Sientra Inc., a breast implant manufacturer, filed for bankruptcy protection in Delaware, hurt by changing consumer spending habits and rising interest rates.
The Irvine, California-based company plans to use the Chapter 11 process to sell itself and has garnered interest from multiple parties, according to a statement. It also said it received $22.5 million of new financing to help fund itself through the bankruptcy process.
The company listed estimated assets and liabilities of between $100 million and $500 million each in its bankruptcy petition.
Sientra began to struggle when the Covid-19 pandemic first took hold in the US and many elective surgeries were restricted or canceled, Chief Executive Officer Ron Menezes wrote in court papers. Later, a “Zoom Boom” in demand for plastic surgery procedures helped Sientra recover, but consumers later pulled back spending amid economic uncertainty.
The company also dealt with high turnover among its sales team and problems with implant manufacturing, Menezes wrote. As Sientra racked up losses, it began exploring options to sell itself but “determined that viable transaction was not possible at the time,” according to court papers.
Later, it fell out of compliance with terms of its first-lien term loan and received a wavier from lenders. The waiver expired on Sunday.
Sientra provides medical devices including breast implants and breast tissue expanders manufactured exclusively in the US, according to its website. Its shares plunged more than 50% on Tuesday after the filing, to 28 cents.
