GDC Technics, an aeronautics interiors supplier, filed for Chapter 11 bankruptcy the same day the company announced it was laying off 223 people in Texas.
The layoffs and bankruptcy filing come after Boeing Co. (NYSE: BA) sued GDC Technics for allegedly being behind schedule on two Air Force One aircraft.
The bankruptcy filing in the Western District of Texas did not include detailed financial information about GDC Technics. The company listed liabilities from $10 million to $50 million and more than 200 creditors owed money. GDC Technics also listed assets from between $10 million and $50 million.
On Monday, Fort Worth, Texas-based GDC Technics announced it would permanently close its San Antonio plant and that most operations at the Fort Worth facility/headquarters would cease. The closure and layoffs will be finalized by May 9.
Brad Forman, CEO of GDC Technics, said layoffs were a result of “the sudden and unexpected termination of a client contract,” according to Monday’s filing with the Texas Workforce Commission.
Boeing sued GDC Technics on April 7, alleging the company is behind schedule on a contract to design and manufacture interiors for two Air Force One planes.
In 2018, Boeing received a $3.9 billion contract to build two presidential aircraft (747-8s) and hired GDC Technics to modify and customize both planes’ interior cabins.
GDC Technics’ delays “have resulted in millions of dollars in damages to Boeing and threaten to jeopardize work that is of critical importance to the (U.S. Air Force) and the president of the United States,” according to Boeing’s lawsuit filed in the Tarrant County District Court in Texas.
On April 17, GDC Technics countersued, alleging that mismanagement by Boeing caused the delays in the construction schedule of the Air Force One planes.
GDC Technics was founded as Gore Design Completions in 1988 in San Antonio by Jerry and Kathy Gore. The company specializes in designing and manufacturing aircraft interiors for heads of state, corporations and celebrities.
In 2014, Gore Design Completions was acquired by an investment group led by Mohammed Alzeer, a Saudi Arabian businessman. The company changed its name to GDC Technics and moved its headquarters to Fort Worth.
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Air Force One supplier cuts 223 jobs after losing Boeing contract