DZS Files for Chapter 7 Bankruptcy, Ceases US Operations

DZS, a provider of broadband access and connectivity solutions, filed for Chapter 7 bankruptcy on Friday, March 14, 2025, after failing to secure necessary working capital to continue operations. The filing has resulted in the immediate cessation of all United States operations and the termination of all US-based employees.

Foreign subsidiaries in Germany, the United Kingdom, and Australia may continue to operate independently from the US liquidation process, though they are expected to experience significant disruptions to daily operations, including IT systems and software programs.
A Chapter 7 Trustee will soon be appointed to oversee the liquidation process in the United States and determine the fate of foreign subsidiaries - whether through going concern sales, local administration, or orderly liquidation.

Despite two years of efforts to balance technology initiatives while optimizing expenses and securing capital, the company was ultimately unsuccessful in stabilizing its financial position. After 25 years in operation, DZS remains hopeful that its market-leading solutions will be acquired through the liquidation process, potentially restoring service to customers and suppliers.
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Affected parties can expect to receive official notification from the United States Bankruptcy Court for the Eastern District of Texas with additional information and the Trustee's contact details.

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