Network Equipment Solutions Files Chapter 7

Online, September 17, 2012 (Newswire.com) - Florida hardware sales company Network Equipment Solutions announced Friday that it intends to file a Chapter 7 petition with the United States Bankruptcy Court for the Middle District of Florida.

NES management authorized the filing of the Chapter 7 petition on Friday. The company has stated its plan, as is the custom under Chapter 7, to make salary deductions and hopes to continue to offer healthcare benefits to its employees as long as possible.
 The status and future of the privately-held company's profit-sharing plan, is uncertain.

Company spokesman John Hamm stated that the source of the company's financial troubles was its reliance on "a vast majority" of its receivables coming from a single customer. This client, Hamm reported, had stopped making scheduled payments on their account, which carried "a very significant balance." Without this scheduled revenue stream, Network Equipment Solutions was unable to continue operations.

Mr. Hamm had been the acting director of the company since mid-July, upon the retirement of the President. Network Equipment Solutions had been a major player in domestic and international hardware and computer network sales. The company had offices and distribution centers in several Florida locations, and several other states.

The Chapter 7 liquidation process is scheduled to begin as soon as possible. Network Equipment Solutions has listed as assets office furniture and supplies, computers, photographic equipment, and a small piece of real property on which the company had a structure for staging purposes.

Information on the companies annual revenue, and exact number of employees were not available as of this writing.