Orem, Utah-based Firstline Security reportedly filed for Chapter 11 bankruptcy on January 25, 2008. Firstline Security ranked 25th on the SDM 100 in 2006, but did not make the rankings last year when the 2007 SDM 100 was ranked by recurring monthly revenue instead of by total gross revenue.
The move to bankruptcy might surprise some. In 2007, Firstline Security ranked
280 on the Inc. 500 list and also was ranked as No. 11 in the Top Companies in
Security by Inc. Magazine. The company, which sells home security systems,
reported 70,000 customers and an 887.4 percent revenue growth rate in 2006.
Chapter 11 bankruptcy is one of two bankruptcy options corporations have, and
is filed by companies that need time to restructure debt. This type of bankruptcy
means the company expects to return to normal business operations and sound
financial security going forward. “It allows them to continue operating,” said
Barry Adler, professor of law at New York University, of Chapter 11. While the
filing allows companies to make a deal with creditors regarding their past
debt, corporations that file Chapter 11 bankruptcy are still responsible for
paying 100 percent of their bills/debt in the future, Adler explained.
It’s important to note that this company is not affiliated with Firstline
Security Systems Inc. of Anaheim, Calif., which ranked as No. 78 onSDM’s 2007
Top Systems Integrators Report.
According to Bloomberg News Service, Firstline Security filed its Chapter 11
papers with the U.S. Bankruptcy Court in Salt Lake City. The security company
listed debt and assets of less than $50 million in the filed documents. (In
2006, the company reported revenue of $42.6 million.)
Firstline Security did not immediately return calls toSDMstaff regarding this
Firstline Security Files Chapter 11
March 1, 2008