Hartford’s Back9Network said Monday that it has suspended operations due to what it described as a temporary shortfall in capital.
“Management and the board of directors are planning next steps and will continue their efforts to secure long-term, operating capital,” Back9 said.
A spokesman said Monday morning that the company would not comment further on its situation.
The announcement comes after a slew of challenges the fledgling media company has faced since its programming went on the air at DirecTV in September.
It cut its workforce by 40 percent in late January, and a source told the Hartford Business Journal soon after that the company was seeking significant capital in order to keep its doors open.
The company sued shareholder and former CEO James Bosworth in December, alleging he had violated his separation agreement by making disparaging comments to potential investors and disclosing financial information.
The suit went to arbitration earlier this month.
The company, which received a nearly $5 million loan from the Department of Economic and Community development in 2012, remains current on its payments as of Monday, according to DECD’s George Norfleet, who directs the Office of Film, Television and Digital Media.
“The department is maintaining regular contact with Back9 with regard to its operations, and as of today the company is current on its loan payments,” Norfleet wrote in an email Monday afternoon. “Back9 has indicated that they are planning next steps. Once those next steps are announced and understood, the department will evaluate their impact on our agreements and – if necessary – take appropriate action to ensure state investments are protected.”
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