Azzur Group, a key player in pharmaceutical consulting, has filed for Chapter 11 bankruptcy in Delaware, weighed down by at least $100 million in debt. The company, which once rode the wave of pandemic-driven demand for cleanrooms and lab services, is now scrambling to sell off its remaining business units to stay afloat.
In a Sunday bankruptcy filing, Azzur reported assets and liabilities ranging between $100 million and $500 million, including $62.2 million in secured debt and $28.4 million in unsecured obligations. With liquidity running low, the company has secured a $23.5 million debtor-in-possession (DIP) loan to keep operations running as it navigates the bankruptcy process.
The Rise and Fall of Azzur’s Expansion Bet
Founded in 2010, Azzur built its reputation by helping biotech and pharmaceutical firms meet stringent industry regulations. But its bold expansion into cleanrooms-on-demand—sterile environments rented out to pharmaceutical developers—proved to be a double-edged sword.
When COVID-19 triggered a biotech boom, Azzur scaled up aggressively, launching new cleanroom facilities in North Carolina, Massachusetts, and California, backed by a $30.2 million investment from Baird Capital. However, when pandemic-driven demand waned, the company was left with high rent, utilities, and operational costs for underutilized facilities.
