In a fight for its survival, Marietta, George-based bio-pharmaceutical company MiMedx, has announced an “organizational realignment” that will reduce headcount by 240 employees, with about 120 being in sales and support functions.
According to David Coles, interim CEO… “Today’s announcement is difficult as it affects many of our colleagues. I’d like to thank all of our employees for their contributions to our Company and their support of our mission. We are confident these organizational changes will both better align our cost structure with our near-term revenue expectations and allow us to operate more efficiently and effectively. By tackling the cost structure now, we believe we are better able to position MiMedx to capitalize on the market opportunities presented by our products and pipeline and, hence, preserve and drive long-term shareholder value.
There is little or no doubt that the company is in desperate times. It is under federal investigation by the IRS, SEC, and DOJ for channel stuffing – recording more sales to the VA Hospitals than it actually used, has been forced to reissue financial statements for the last six years, has seen their stock delisted from NASDAQ, and has seen many of their top leadership leave the company. Not surprising the departures included the former Chairman and CEO, the COO, the CFO, and Treasurer. The class action attorneys are soliciting stockholders and it would be surprising if the company did not enter a prepackaged bankruptcy.
Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?