Matrix Electronic Measuring, maker of the Matrix Wand, has filed for Chapter 7 bankruptcy due to R&D issues and an insufficient post-COVID rebound in business, according to the company’s bankruptcy attorney.
“They were having a difficult time overcoming because some of the equipment needing to be updated and having to retool some of the equipment in order to be able to expand the business,” attorney Neil Sader said.
“What they also found was that there was a lot of consolidation within the repair industry and… some of the larger collision and vehicle repair types of facilities were not opting to use it… it was not growing as they had expected. The product was working but it was not growing as they had hoped.”
The voluntary bankruptcy was filed by Matrix’s trustee to potentially sell the business but that hasn’t been decided yet.
“She is receiving interest from various parties wanting to kick the tires and take a look and is just reviewing the whole situation as we speak,” Sader said. “It is up in the air right now.”
While the company may go out of business, subscriptions for the Matrix Wand will still be active for at least the next two to three months, he added.
It may be possible for repair centers to individually subscribe to the third-party software and data provider of the Matrix Wand. Matrix is considering that option but hasn’t made a decision yet.
The measuring tool was recommended by collision repairers in a 2015 Auto Body Repair Network equipment list. At the time, Matrix said one study found that the wand detected an extra three billable hours worth of damage, on average. Its website states the tool reduces failed alignments by 95% and reaches precision within 1 millimeter on the more than 24,000 reference vehicles that are loaded in its software.
Notices were sent out earlier this month to inform subscribers of the bankruptcy, according to Sader. The bankruptcy petition shows that there are more than 100.
After any administrative expenses are paid, no funds will be available for distribution to unsecured creditors, according to the petition.
Matrix has nearly $1.5 million in property including about $111,500 in cash, $73,106 owed by customers, nearly $250,000 in inventory, and about $1.1 million worth of fixtures, machinery, and equipment.
The company has $4.9 million in debt, including $642,000 to creditor, Bennington State Bank with about $1.5 million in collateral.
Revenue from the beginning of the fiscal year on July 19 to the bankruptcy filing date of Sept. 11 was $207,922. During the calendar year 2022, revenue earned was $500,900. In 2021, Matrix brought in $603,133.
Founder and managing general partner, Jan Srack, didn’t return Repairer Driven News’ request for comment by the publication deadline.
Featured image credit: Gam1983/iStock