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Unilife lays off 51 as closures, bankruptcy loom
York-based Unilife recently laid off 51 employees at its two Pennsylvania facilities, which both are at risk of being closed if the company can't attain more funding quickly.
In its latest filing to the U.S. Securities and Exchange Commission, Unilife told regulators it had terminated 51 workers at its offices in Conewago Township and King of Prussia.
Unilife, a developer and commercial supplier of injectable drug-delivery systems, will be forced to permanently close both facilities by June 4 if the company is unable to secure more funding, according to the filing.
The company submitted a notice to the state through the Worker Adjustment and Retraining Notification Act that the closure would affect 73 employees at the Conewago Township facility and 57 in King of Prussia. It is not known whether those numbers include the 51 terminated April 4.
Company officials did not immediately respond to a request for comment.
Unilife wrote in its SEC filing that it did not believe it had enough money to provide sufficient liquidity past April 7 and was actively seeking funding methods. Barring new funding, it would consider filing for Chapter 11 or Chapter 7 bankruptcy, the filing states.
The company recently put its 160,000-square-foot Conewago Township facility at 250 Cross Farm Lane on the market in an effort to decrease operating expenses.
The facility, which serves as the corporate headquarters, includes clean rooms to produce ready-to-fill syringes, a product development center, a microbiology lab, quality inspection and control rooms and an inventory warehouse, while the building also functions as the company’s global headquarters.
The company built the facility in 2010 with more than $15 million in state and federal funding, about half of the total cost of construction.
Unilife has been struggling financially for a couple years, laying off about 50 employees during September 2015 and nearly losing its listing on the Nasdaq Stock Market due to consistently low share prices.
The company's stock price closed at 32 cents per share on April 6, according to Yahoo Finance.