GigaMonster Networks LLC, a high-speed internet provider backed by investment firm Barings LLC, filed for chapter 11 protection, aiming to sell itself under bankruptcy, WSJ Pro Bankruptcy reported. The Marietta, Ga.-based company specializes in deploying high-speed internet services to multifamily and commercial buildings. It sought chapter 11 protection on Monday in the U.S. Bankruptcy Court in Wilmington, Del., after having struggled to quickly expand the company through acquisitions, according to the court filing. “Growth was slower than anticipated, and the company did not generate revenues sufficient to offset the drain on cash” to cover the fixed costs, said Rian Branning, the company’s chief restructuring officer, in the filing. GigaMonster started as Kubix LLC, a Florida limited liability company founded in 2013, and was changed to the current name the following year. The company contracts with property owners to set up high-speed internet networks for the Internet of Things, including smart lighting, security systems, door locks and thermostats. It also provides internet services to subscribers in those buildings. In 2019, Barings Asset-Based Income Fund (U.S.) LP became the majority investor. But the company’s growth has been limited, and it currently contracts with about 400 properties and about 35,000 internet subscribers. GigaMonster’s net operating loss was about $22 million on revenue of about $18.8 million in 2021, according to a filing. The condition didn’t improve in 2022 and, as of October, it reported a net loss of about $22.5 million, the filing said. The company had about $44 million in debt as of the petition date, according to court papers.
