Baltimore architecture firm Development Design Group filed to reorganize its debts in a Chapter 11 bankruptcy in federal court this week, citing lingering effects from the real estate downturn in 2008, the unexpected death of its CEO last year and disputes among shareholders.
Revenue has been falling at the firm, which was known in Baltimore for its international work, so DDG faces losses of nearly $500,000 through May this year, compared to profits of about $300,000 in 2015.
The firm, which employs 40 people down from a height of 125, is also embroiled in internal disputes related to transfers and bonuses involving the late CEO Ahsin Rasheed and the firm's obligations to repurchase his shares, according to the filing.
The firm said it is seeking "breathing space" with the bankruptcy to reorganize in a way that satisfies creditors and other stakeholders. It estimates total assets of about $4 million and lists more than 100 creditors.
New CEO Anthony van Vliet and an attorney for the firm did not respond to requests for comment.