Raleigh drone company files for bankruptcy, to shutter Glenwood South headquarters
The drone technology firm PrecisionHawk will cease operations and close its downtown Raleigh headquarters after filing for Chapter 7 bankruptcy late last week. The company occupied the second floor of the Creamery Building in Glenwood South, one of the city’s busiest social districts.
“The company did not have sufficient capital to maintain operations,” said Jason Hendren, a bankruptcy attorney in Raleigh who is representing PrecisionHawk. According to its bankruptcy filings, the company owes $242,667 in unpaid rent on its headquarters.
Founded in 2010, PrecisionHawk grew rapidly last decade as it completed a series of successful funding rounds. Clients included utility providers and agricultural companies, which relied on PrecisionHawk drones to capture data and analyze the results.
From 2015 to 2017, it was led by Bob Young, co-founder of the software giant Red Hat. Four years ago, the firm relocated from North Raleigh to Glenwood South, where it employed approximately 100 people by the end of 2019.
PrecisionHawk had already gone through significant change this year. In March, it replaced its CEO, Jim Norrod. A few weeks later, it was announced that PrecisionHawk would be acquired by the Norwegian company Field Group. Despite the takeover, PrecisionHawk pledged its headquarters would remain in Raleigh.
But on Thursday, the firm filed for bankruptcy. In contrast to a Chapter 11 bankruptcy, Chapter 7 means PrecisionHawk does not intend to continue operating. Its filing shows the company has around $3.8 million in assets yet more than $17.5 million in debt.
A court-appointed trustee will be responsible for liquidating assets to pay creditors. In the majority of Chapter 7 cases, most general, unsecured creditors “get nothing,” said John Small, an attorney in Greensboro with the firm Brooks Pierce.
PrecisionHawk did not respond to questions from The News & Observer about the size of its workforce at the time of the bankruptcy filing. On LinkedIn, multiple PrecisionHawk employees feature the OpentoWork hashtag on their profiles, which employees use to signal they are seeking new opportunities.
This story was originally published December 18, 2023 at 10:38 AM.
