Back9Network announced Monday it has temporarily halted operations.
A source indicated the news to Golf News Net that the Hartford-based golf-lifestyle network was closing up shop, at least on an interim basis. The company released a statement to Connecticut media.
JUST IN: from @Back9Network: "Due to a temporary shortfall in capital, Back9Network has suspended its operations"
— Brad Luck (@BradLuckNBC) February 23, 2015
Back9Network went on air on DirecTV on Sept. 29, 2014, the day after the Ryder Cup, with a multi-year deal where the network would pay the satellite provider some $7 million annually for their spot on DirecTV's lineup. Shortly after the network went live, insiders suggested the company was having trouble keeping up with the bills. The company missed payroll for non-hourly employees on Jan. 9, meeting back pay a week later. On Jan. 26, the company laid off 41 percent of its workforce in an effort to save money.
Co-founder and former CEO Jamie Bosworth was ousted last July in what Bosworth terms a power struggle with board chair Sandy Cloud. In response to a lawsuit the company filed against Bosworth for public disparagement and revealing proprietary financial information at the end of 2014, Bosworth said Cloud had told him the company would be able to raise some $10 million in needed capital, but that infusion was predicated on Bosworth exiting the company as CEO. Bosworth agreed.
The company had been looking for an emergency infusion of capital to keep the company afloat, and there were rumors the Hartford-based network was in talks with potential angel investors. However, it appears those talks haven't materialized in the form of a needed investment.
