Pay By Touch entering Chapter 11, selling subsidiaries
Failed biometrics payments firm Pay By Touch has filed voluntarily for Chapter 11 bankruptcy and will sell subsidiaries ATM Direct and CardSystems, employees learned during an all-hands on Friday. During the meeting, Pay By Touch COO Eula Adams asked employees to remain positive. Then he virtually assured that wouldn't happen by explaining the company's payroll situation.
Adams said the company still owes $3 million in back pay, and, according to our source, new investors in the company have demanded that money not be paid. Which of course leads to a pressing question: Pay By Touch has new investors? For their sake, let's hope company founder John Rogers didn't set their price.