The biometric payments company Solidus Networks Inc. said it is putting some of its units up for sale and has reshaped its board after consenting to a bankruptcy filing.
The San Francisco company, which does business under the name Pay By Touch, said it is looking for buyers for its payments-related businesses but plans to keep its loyalty program businesses.
The units it is trying to sell include Paycheck Secure, ATM Direct, and Payment Solutions. The ones it plans to retain include Loyalty Acquisition and S&H Marketing Services. It said it continues to maintain its portfolio of 60 patents and its technology platform.
Solidus was brought to bankruptcy court under an involuntary filing made in late October by employees seeking to recover unpaid salaries. It acknowledged in filings that by late November it owed $6 million in payroll liabilities and was behind on several bills, and faced eviction at one of its San Francisco offices.
Last month Solidus consented to the bankruptcy filing and hired the investment banker Jefferies & Co. Inc. to handle talks with potential investors.
By then the company also had received $9 million in emergency funding from investors, but it said that was not enough to cover the payroll it owed. It said Wednesday that it has since reduced its head count, combined facilities, and taken other steps to cut costs.
It has also restructured its board; the company's founder, John Rogers, retains a seat, but in a non-executive role.
