Broadband gear and cloud services company DZS has ceased operations in the US after entering Chapter 7 protection last week.

The company stated that it had entered the liquidation proceeding under Chapter 7 of the United States Bankruptcy Code.

Plano-based DZS said its foreign subsidiaries in Germany, the United Kingdom, and Australia may continue to exist outside of the US liquidation.

“It is with utmost disappointment that we share that DZS was unable to secure the necessary working capital from either its current lender or any prospective lenders to sustain the business going forward,” said DZS in a statement last week.

“As a result, on Friday, March 14, the Company commenced a liquidation proceeding under Chapter 7 of the United States Bankruptcy Code. All United States operations ceased, and all United States employees were terminated as of the time of the Chapter 7 filing.”

DZS said that a Chapter 7 trustee will be appointed soon to oversee the liquidation process in the US and how the company can continue with foreign subsidiaries and affiliates.

The company warned that its businesses and affiliates outside of the US “will experience near-term business disruption with day-to-day operations, which will include various IT (email), and other software programs.”

Founded in 1999 as Zhone Technologies, DZS noted in its announcement that the last two years have been difficult for the company.

The company rebranded from Dasan Zhone under Charlie Vogt, the company’s CEO who took over at DZS in August 2020.

Just a week before its Chapter 7 filing, DZS said it was exploring strategic alternatives to maximize stakeholder value in “the face of dwindling cash reserves.”

At the time, DZS said it was considering a range of options, including raising finances, selling the company or its assets, or filing for Chapter 7 bankruptcy to facilitate a reorganization or sale.

The company has previously sold some of its assets, including its Asian business unit for $48 million to one of its major shareholders Dasan Networks.

In November, the company sold its enterprise Internet of Things (IoT) unit for $6.5 million and its WiFi Management software portfolio for $34m in October.

Despite some of the sales last year, DZS acquired network firm Netcomm Wireless from Casa Systems in May.

DZS has previously referred to opportunities around the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program created by the Biden Administration in Congress in November 2021.

However, that program has had its own well-documented struggles, with funding still being allocated on a state-by-state basis, and at present, nobody in the US has been connected via the BEAD program.