, facing a severe financial crunch, said Tuesday it will close four offices and lay off 300 employees, or 42% of its workforce. It also announced the resignation of three senior executives.
Though the company said it has enough cash to stay in business until June 30, it admitted that it would be difficult or impossible to find further financial backing. Xpedior said it is considering "strategic alternatives" for the sale of all or part of its operations. Even so, its stock likely will have no value and the company could be forced to file for bankruptcy, according to a statement.
Trading in shares of Xpedior was halted on the news and had not opened as of 10:15 a.m. ET. Shares closed Monday at 31 cents, down from a 52-week high of $25.69.
Xpedior, which provides consulting and creative services to e-business companies, said it had experienced a significant decline in revenue and will close its New York, San Jose, Denver and Dallas offices and reduce staff in its Alexandria, Va., office and at its headquarters in Chicago.
The company faces an April 17 deadline to comply with Nasdaq's $1 minimum bid price or be delisted.
Anthony G. Capers, president, Mark D. Hansen, executive vice president of operations, and Robert D. Whitehead, senior vice president of sales, all resigned. The company has not yet named replacements.