Total Instrument and Electrical Services, a small company based in Houma, has filed for Chapter 7 bankruptcy despite federal government support during the coronavirus pandemic.
Total Instrument and Electrical Services was founded in 1999. Its customers include Chevron, BP, Shell and other companies in the energy industry, according to its website.
“COVID hit when we came out of a recession and we got through, but it completely paralyzed us,” said Danny LeBlanc, CEO of Total Instrument and Electrical Services.
It got to the point where insurance costs outweighed the value of new customer contracts, he said. While LeBlanc is 57 years old, early retirement is out of the question as he has invested the money back in the company to keep it going. Now he’s looking for a job during an economic recession.
“I can’t retire and start all over again … PPP was okay, but it wasn’t enough,” said LeBlanc.
The company, which has worked on oil rigs and power plants, once wanted to expand its operations by opening an office in Midland, Texas, according to its top manager’s LinkedIn profile. It specializes in the design, engineering and manufacture of liquid and gas meters. It had $ 2.2 million in total assets but $ 3 million in debt at the end of December, bankruptcy filings show.
In 2018, gross annual revenue was $ 5.4 million, but dropped to $ 2.5 million in 2019. That year, the company had sales of just $ 677,961, according to bankruptcy records. A creditors’ meeting is planned for the end of January.
The company was approved for a $ 326,000 state Paycheck Protection Program loan to support at least half a dozen jobs this year and took out a U.S. Small Business Administration Disaster loan of $ 150,000 Dollar on.
Several oil and gas services companies in the region have filed for bankruptcy this year as oil prices plummeted and demand for gasoline and jet fuel has evaporated due to restrictions to contain the spread of the coronavirus pandemic.