Maverix.net, Inc., a regional DSL provider, said it would cut back more than 80% of its employees and reduce business operations to a "holding status".
A company representative said the Chicago-based firm, which entered the Milwaukee market in September, failed to raise sufficient capital to continue operations.
Maverix.net, which more than doubled its customer base in the fourth quarter of 2000, provided business-class DSL and Internet services to small businesses here and in St. Louis, Kansas City, Little Rock, Tulsa and Oklahoma City.
"Although we have continued to deliver against our plan, " said Tom Kalishman, chief executive officer, "we are directly affected by the unpredictability of the investment market and found the fund-raising environment extremely difficult for companies in our industry." Kalishman said the company would continue discussions already in progress regarding the sale of its assets, transfer of customers and employees.
The 18-month old company had sought additional funding since mid-summer, as intended in its original business plan.
While customer demand for DSL services like those offered by Maverix.net remains quite strong, Kalishman said, investors have shown increasing reluctance to fund the continued growth of competitive telecom providers.
