Cambridge Analytica woes lead to Chapter 7

The move comes less than three weeks after Cambridge Analytica announced it would shut down, citing the debilitating controversy over its handling of some 87 million Facebook users’ data.

Cambridge Analytica, the political intelligence firm whose tactics came under fire and sparked a whirlwind of scrutiny over Facebook data, has submitted papers in the U.S. to begin liquidating.

The company filed late Thursday to enter Chapter 7 bankruptcy. It was a widely expected decision after the firm had started similar proceedings in United Kingdom courts.

The move comes less than three weeks after Cambridge Analytica announced it would shut down, citing the debilitating controversy over its handling of some 87 million

Facebook users’ data and its aggressive political maneuvers, including past ties to the

Donald Trump campaign.

The company is also said to be under investigation by U.S. special counsel Robert Mueller as he probes Russian meddling in the 2016 presidential election. That will continue.

Cambridge Analytica said this month it had “unwavering confidence that its employees have acted ethically and lawfully,” but “the siege of media coverage has driven away virtually all of the company’s customers and suppliers.”

The company had 107 full-time employees and offices in London, New York and Washington, D.C., as of this month.

In a court filing, Cambridge Analytica listed assets of about $100,000 to $500,000 and debts of about $1 million to $10 million. The company said it had no more than 49 creditors.

In Chapter 7 bankruptcy, a trustee is typically appointed to oversee a sell-off of the debtor’s remaining assets. Proceeds are used to pay as many debts as possible.

Afterward, the company ceases to exist, though it’s possible that an outsider could attempt to buy intellectual property such as the name or technology.