The bankruptcy filing of Frontier Communications shows that the company was unable to make the payments it needed to survive and is closing the doors on more than 1,000 jobs, the company announced on Wednesday.
In addition to the closure of its office in Seattle, the Seattle-based company has also announced it will stop offering internet service in many states, including Colorado, Utah, New Mexico, Texas and North Carolina.
The closure of the company’s Seattle office and the shutdown of internet service also affects about 800 employees in Texas, and about 1,100 employees in North Carolina, Frontier said.
Frontier said it would close its Colorado office, too, by July.
It has also said it is closing its Texas offices and moving to Colorado.
Frontier, which has been around for more than 20 years, has struggled to stay afloat.
The company posted a net loss of $14 million in 2016, and has been hemorrhaging cash for years.
Frontier was acquired by Charter Communications in 2017.
Frontier has been facing mounting pressure from regulators over its business practices, which include not paying taxes on the billions of dollars in revenues it earns from selling customers’ data to the internet companies.
Last year, the Federal Communications Commission fined Frontier $150 million over allegations that it overcharged consumers and had failed to make payments to the Federal Trade Commission.
Frontier told The Washington Post that it had a plan to pay $2 billion in fines, but that it was in discussions with the Justice Department.
In a filing to the bankruptcy court, Frontier outlined plans to sell assets, such as the Seattle office, to raise money for the company and to take on debt.
The filing also says it will be selling its fiber optic network, which includes the Denver area, and its data center, which was acquired in 2014.
The filings are not expected to affect other employees or the companies that have been part of Frontier’s workforce for years, said David Gillett, Frontier’s chief financial officer.
“The vast majority of the impacted employees will be redeployed to other Frontier operations,” GilleTT said in a statement.
Frontier’s announcement on Wednesday comes after a court-supervised bankruptcy auction for the Colorado office in late March.
Frontier is currently seeking to sell a portion of its remaining assets in the state to raise cash.
Frontier had been planning to auction off about $2.2 billion of assets, but the sale of those assets is still being planned, Frontier CEO Matt Wood said in April.
Frontier announced in April that it planned to sell its remaining broadband assets, including fiber optic networks in Colorado and Kansas, and move to Colorado in 2018.
Frontier plans to move its Denver office to Colorado after the auction is completed.
In the past, Frontier has also had trouble keeping up with the demand for its fiber network.
The Seattle office was shut down in 2017 and the Kansas office shut down earlier this year.
Frontier also said in January that it would stop offering service in some states.
Frontier says it has more than 3 million customers in its service areas, including Washington, Maryland, Connecticut, Rhode Island, New Jersey, New York and Pennsylvania.
Frontier lost about $1.6 billion in 2016 and was in the red in 2017, when it lost $2 million.
Frontier blamed some of its problems on an increase in the number of broadband customers in the United States, which prompted it to lower prices for its customers.
Frontier and Charter Communications both announced plans to buy a majority stake in Frontier last year.
Charter acquired Frontier in 2016 for $39.5 billion.
Charter’s deal for Frontier was part of the merger that gave the companies control of the cable, phone and Internet companies.
Frontier ended up with about a quarter of its revenue from internet customers and about a third of its customers in Kansas.
Charter had more than 70 percent of its revenues from internet and cable customers.
Charter has also been working to sell the Denver office, which it acquired in 2015.
Charter bought Frontier in the spring of 2018.
Charter and Frontier are now trying to merge their companies to form a new company called Frontier Communications.
Frontier Communications said on Wednesday that the merger will create a new national provider that will compete with Comcast, Time Warner Cable and other large cable and Internet providers.
“Our mission is to create a competitive national broadband provider, but our focus will be on our own customers, our own networks, our network investments, our technology investment, and our long-term commitment to a sustainable future for our network,” Wood said.