IronNet Is Officially Shuttered, Likely To Seek Liquidation

The cybersecurity vendor disclosed it will not be resuming operations and has laid off remaining staff.

IronNet Founder and Chairman Keith Alexander

IronNet said Friday it will be unable to resume operations and also does not expect to get Chapter 11 bankruptcy protection, making a liquidation of its assets likely.

The disclosure came in a filing with the U.S. Securities and Exchange Commission, which also said that it has “terminated the remaining employees” of the company.

[Related: Cybersecurity Layoffs In 2023: Companies That Cut Jobs In Q3]

Without Chapter 11 bankruptcy protection, IronNet will need to pursue a Chapter 7 liquidation of its assets, the company noted in the filing.

In early September, the cybersecurity vendor disclosed that it was furloughing most employees and halting the bulk of its operations, “as a result of the liquidity position” of the company. However, at the time, IronNet did not rule out the possibility it might regain “sufficient operating liquidity” to rehire its furloughed employees and resume its business operations.

In the SEC filing Friday, IronNet conceded that it “does not have the ability to satisfy its debts and related obligations.” As a result, the firm “will no longer have the capability to prepare financial statements and other disclosures required for periodic reports for filing with the Securities and Exchange Commission, and the related actual and potential effects on the Company and its subsidiaries will be material and adverse,” the company said in the filing.

The shuttering comes several months after IronNet’s founder, Keith Alexander, resigned as CEO as part of a take-private deal with investment firm C5 Capital. Alexander had remained as chairman of the board at IronNet.

A retired four-star general and former director of the National Security Agency, Alexander launched IronNet in 2014, and the company went public in 2021.