Centerline Solutions, an engineering and specialty services firm for the telecommunications industry, filed for Chapter Seven bankruptcy last Friday. The firm was founded in 2002 and, following initial success, began to experience smaller profits due to increasingly difficult cash flow dynamics according to Ian Ross of Concentric Equity Partners, an investor in the company.
“Extended terms made cash flow difficult,” Ross said referring to the 120-days and-beyond terms demand by large customers.
(See Inside Towers July 2018 article:“The Check Is Not in the Mail as Payment Delays Could Threaten 5G Deployment”). The company focused on serving the highly-touted 5G, small cell and fiber demands of customers.
“The industry was getting too difficult to deal with,” Ross told Inside Towers. “There was a decrease in professional services and construction services,” he said. “It’s hard to compete with four guys and a truck.”
Ross said the Board decided to shut it down after shrinking the company yet still experiencing crippling expenses. Centerline acquired UCI Construction followed by Washington-based Cascadia PM, in January 2015.
July 17, 2019