Paul Singerman, who represents the company in bankruptcy court, said American Medical Depot is a “Covid victim.” He said the company will liquidate its remaining assets and cease operations, according to the report.
American Medical Depot posted revenue of $39.1 million in 2019, but a cancelled contract put the company on shaky financial footing.
In 2016, American Medical Depot entered into a contract with the Veterans Health Administration to provide supplies to 70 government hospitals on the East Coast. The Veterans Health Administration terminated the contract, which made up 85 percent of American Medical Depot’s sales, as of Aug. 1, according to the report.
The company had 173 employees in August but has since laid off all but 33 workers.
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