ProPhase Diagnostics NJ, Inc., a subsidiary of ProPhase Labs, Inc. (NASDAQ: PRPH), has filed for Chapter 11 bankruptcy protection in the District of New Jersey. The filing, dated September 22, 2025, marks a significant development for the company, which has faced financial challenges stemming from the COVID-19 pandemic and subsequent reimbursement issues.
ProPhase Diagnostics NJ filed for Chapter 11
Established in October 2020, ProPhase Diagnostics NJ, Inc. offered a range of COVID-19-related clinical diagnostic and testing services.The company filed a Chapter 11 Voluntary Petition under case number 3:25-bk-19833, seeking to restructure its debts.
Thaddeus R. Maciag of Maciag Law, LLC will represent ProPhase Diagnostics NJ in the proceedings, according to Pacermonitor.
The company lists $10 million to $50 million in assets and $100,000 to $500,000 in liabilities. It plans to keep operating under court oversight while working with fewer than 50 creditors.
Key Bankruptcy Details
The company is now seeking to restructure its debts and operations under court supervision.
- Case Number: 25-19833
- Assets: $10,000,001 – $50 million
- Liabilities: $100,001 – $500,000
- Creditors: 1-49
- Industry: Business Services
- Filing Date: September 22, 2025
The company, certified to provide COVID-19 and respiratory testing, saw strong demand during the pandemic. As testing needs declined, its revenue fell.
The company has also filed an application for the retention of Thaddeus R. Maciag, Esq., as debtor’s attorney, with objections due by October 14, 2025. A status conference hearing is scheduled for October 28, 2025.
Declining revenue strained cash flow and contributed to the decision to file for Chapter 11 bankruptcy.
