DBi Services announces closing of operations
HARRISONBURG, Va. (WHSV) - DBi Services announced Monday that due to continued operating and financial challenges, sudden and unexpected setbacks and particularly the decision of its primary lender to discontinue all funding, the company determined that a wind down of substantially all of its business is necessary at this time.
The company says macroeconomic forces as a result of the COVID-19 pandemic, including supply chain disruptions, higher material costs and the labor shortage, coupled with increased financial requirements from sureties and lenders, impeded its ability to successfully execute and finance its projects.
The company says it explored every viable alternative to avoid this outcome, working together with its outside advisors, investors, lenders and sureties to try to identify a resolution to address the issues at hand and enable the DBI Services to move forward.
The Company’s Digital Traffic Systems, Inc. subsidiary, which has not experienced the same challenges, is continuing to operate and serve customers.
DBi Services says deeply regrets the impact on its valued employees, customers, suppliers and partners, and is working diligently to manage as smooth a transition as possible.
DBI Services worked on the Staunton South project and has provided routine maintenance in the Staunton District for southern Interstate 81 and Interstate 64.
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