(Bloomberg) -- Ventilator-maker Vyaire Medical Inc. filed for bankruptcy, succumbing to a decline in demand for ventilators as the Covid-19 pandemic has eased.

The Illinois-based provider of medical equipment filed for Chapter 11 bankruptcy Sunday, listing assets of as much as $500 million and liabilities of up to $1 billion. The company said it intends to sell all its assets and is seeking approval to keep operating through the sales process.

Vyaire, which develops breathing technology, experienced significantly higher demand for its products during Covid. But pandemic-related supply chain disruptions diminished the company’s cash flow, while increased competition hurt its business. Vyaire has lost over 10% of its market share in its ventilation segment since Covid infections began to wane.

“The Covid-19 pandemic significantly increased demand for the Company’s products and services, but post-pandemic macroeconomic challenges, including higher interest rates, inflationary pressure, and supply chain disruption forced the Company to reposition itself for the long term,” Chief Executive Officer John Bibb said in a written court statement.

Vyaire was founded by Forrest Bird, a World War II army pilot who studied high-altitude respiratory problems and invented the first mechanical ventilator over a decade after the war ended. The company now operates approximately 27 offices and manufacturing facilities and employs about 950 people around the world.

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