Advanced Tissue closes its doors and files $ 25 million in bankruptcy | Arkansas Business News

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A former CEO of Little Rock’s Advanced Tissue LLC says he’s not sure why the wound care supplies company closed and filed for Chapter 11 bankruptcy reorganization in August, leaving hundreds without work, but he wants to help find a solution to the problems that ensue. legal fight.

The company, which has shipped prescribed wound care kits to patients primarily for home use, has listed $ 25.5 million in debt and $ 7.1 million in assets, according to its filing with the U.S. court. bankruptcies in the Eastern District of Arkansas.

The bankruptcy comes after Bell Bank of Fargo, North Dakota sued Advanced Tissue and related companies – AT Buyer Inc., AT Parent LLC and Valley Ranch Skin Care LLC – for defaulting on a series of loans from 2017, according to documents filed Aug. 18. United States District Court in Arkansas.

In late 2020, Advanced Tissue and the companies failed to make “timely payments,” triggering the default, according to the bank’s lawsuit, filed by attorney Lance Miller of Mitchell Williams Selig Gates & Woodyard of Little Rock.

Advanced Tissue and its subsidiaries told the bank they were audited by the Centers for Medicare & Medicaid Services, the federal agency that provides health coverage to more than 100 million Americans, “but did not provide ‘detailed information on the scope / purpose of the audit,’ said the suit.

The bank also said the companies were insolvent and no longer had a board of directors. The bank alleged that as of August 13, the defendants owed $ 8.6 million plus interest and legal fees. He sued for breach of contract and requested the appointment of a receiver. The case was put on hold when Advanced Tissue filed for bankruptcy.

Advanced Tissue CEO Robert Betchley and CFO Michael Cole could not be reached for comment. Betchley’s LinkedIn Profile shows he was CEO from September 2020 to September 2021. Cole’s LinkedIn Profile shows that he joined the company in 2006 and is still there. Advanced Tissue bankruptcy attorney Kevin Keech of Little Rock did not respond to a call for comment.

Kevin Lamb, who founded Advanced Tissue in 2000, told Arkansas Business by email last week that he learned on June 18 from an employee that the company was shutting down and that “hundreds of employees would be unemployed.

“While saddened by this sudden shutdown, I have not been involved or consulted on AT decisions,” Lamb said.

Lamb said he sold his shares in the company in September 2015, but remained CEO until September 2018. “Since then, I have not been involved in any business decisions,” Lamb said. “In short, I know next to nothing about the operations of Advanced Tissue in the time since I left and I can only speculate with others in the industry as to what happened.”

But Advanced Tissue’s bankruptcy filing and lawsuit gives some insight into the company’s financial situation.

One of Advanced Tissue’s major creditors is Yukon Capital Partners II LP of Minneapolis, which has a $ 15 million debt that Advanced Tissue acquired in September 2017. Yukon Capital Partners is an investment firm that owns an participation in the company. Advanced Tissue is owned by AT Buyer Inc. of Southlake, Texas. AT Buyer is owned by AT Parent LLC of Little Rock, which is owned by Yukon Capital Partners, with a 69.3% interest; Ancor / AT Investments LLC of Southlake, Texas, with 28.3%; and Lamb of Little Rock with the remaining 2.4%.

Lamb, who has worked in healthcare for over 30 years, told Arkansas Business in 2013 that in the late 1990s he was working in pain management and noticed patients , some with non-healing wounds, were sent home. The settings.

“We started to look around this market and we thought, wow, this is emerging. It wasn’t even a trend back then, ”Lamb told Arkansas Business.

In 2013, he was a finalist for the Arkansas Business Executive of the Year. At that time, the company had 135 employees and operated in 50 states. In an October 2016 article in the Arkansas Democrat-Gazette, Lamb estimated that Advanced Tissue earns around $ 35 million to $ 45 million per year.

After Lamb left the company in 2018, Advanced Tissue’s gross revenue was $ 14.8 million in 2019 and increased to $ 18.2 million in 2020. He said gross sales of $ 9 million for almost the first eight months of this year.

“I was proud of the work I did while managing Advanced Tissue,” Lamb said. “And although I was not involved in the business when it closed, I firmly believe in doing the right thing for others, so I am committed to finding fair and reasonable solutions to ongoing disputes. “


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