US-based payments firm Digital River is reportedly winding down its operations, according to local media outlet The Minnesota Star Tribune.Digital River will reportedly close its US headquarters and lay off staffFounded in 1994, Digital River provides API-based order management, e-commerce, and cross-border payment processing solutions. The company, which New York equity firm Siris Capital acquired for $840 million in 2014, had previously secured partnerships with the likes of Adobe, Salesforce, and American Express.The Minnesota Star Tribune, citing a WARN notice filed by Digital River with the Minnesota Department of Employment and Economic Development last month, reports that the company is permanently closing its Minnetonka-based headquarters by the end of March and is set to lay off 122 US employees, including remote workers based around the country.The global wind-down process is seemingly underway, with The Minnesota Star Tribune reporting that the company has initiated insolvency proceedings for its German subsidiaries, while The Irish Times reports that provisional liquidators have been appointed to oversee the closure of Digital River Technology Limited, the company’s Irish arm.In an internal note that has since been republished on TheLayoff.com, Digital River CEO Barry Kasoff told employees: “As you know, we have been navigating a challenging period in our business for some time now. While we’ve worked diligently to consolidate our operations and strengthen our focus on our Digital and Subscription businesses, unforeseen factors have intensified the strain on our financial resources.“The rapid contraction of key customers, combined with the headwinds presented by new deals with shorter payment terms and U.S. trade policies that impacted one of our largest customers, have exacerbated the pressure on our available capital. These challenges, coupled with rising operational costs and tax obligations, have impacted our ability to sustain operations.”Kasoff explains that, as of 2 January 2025, Digital River became “unable to tap into advanced funding of our revolving credit facility”, leading to the company engaging with its “lenders and largest customers to source additional funding or determine an alternate solution to sustain our operations”.However, the company was “unable to identify a path forward that would allow Digital River to continue operating”, resulting in the “incredibly difficult decision to initiate the wind down of the business”, adds the CEO.“Globally, we expect a substantial reduction in our workforce as part of the wind down process, which will also impact our independent contractors. While some employees may remain to assist with the transition, no specific decisions have been made at this time,” continues Kasoff.The reports come after technology news outlet The Register reported last October that the company had “not paid numerous merchants since midsummer for software and digital produ
Mer. Feb 12th, 2025
