Kentucky’s Labor Cabinet has filed a complaint on behalf of employees for unpaid salaries and wages, totalling almost $100,000 (€85,000).
Kentucky’s Labor Cabinet has filed a complaint on behalf of employees for unpaid salaries and wages, totalling almost $100,000 (€85,000). The action comes as employees filed complaints with the Labor Cabinet for unpaid wages going back as far as 2014. In correspondence seen by The Recycler, Photizo has struggled financially for several years, but as late as January this year was promising to make payment to employees from client payments.
Earlier this month Meritus Ventures repossessed the Photizo assets and sold them to Virtulytix Inc. a company established by Ed Crowley and other Photizo employees. The deal, worth $4 million (€3.4 million) leaves the former Lyra Research owners set to lose $1.3 million (€1.1 million). Junior and unsecured creditors and employees are set to lose a further $1 million (€0.93 million).
While struggling financially over the same period, Photizo invested heavily in the development of a Predictive Analytics division led by Scott Hornbuckle and which is part of the assets that have been acquired by Virtulytix deal. In their press release announcing the deal Scott Hornbuckle, President at the newly created Virtulytix, Inc. was very upbeat about the prospects for Virtulytix.
The Recycler spoke with a person familiar with the deal who said “the deal works on one level for the new company and the retained and new employees and Meritus. The consulting market is a challenging space to be in at the moment. It takes a lot of time to build client relationships and even with the benefit of the Photizo customer base it will be hard for any new company to leverage themselves into new sectors.”