Cutera, a company that develops advanced devices for tackling skin conditions such as acne and pigment damage, emerged from Chapter 11 bankruptcy in May 2025. It is an example of a company with innovative products that nonetheless was forced into Chapter 11 bankruptcy due to financial mismanagement.

Companies that file for Chapter 11 bankruptcy protection often face a similar set of underlying financial issues and risky behavior. In the months leading up to the bankruptcy filing, they tend to have mounting liquidity problems stemming from high interest payments on loans, payment delays from key customers, or similar constraints on cash flows. While the business may have a strong lineup of products or services, financial missteps can lead the company down the path of bankruptcy. Chapter 11 bankruptcy can provide an opportunity for a company to get on solid financial footing again by restructuring its debt and raising additional capital from investors.

In the time leading up to Cutera’s bankruptcy filing, the company faced a number of operational and financial setbacks. Cutera had experienced failed product launches and had an important distribution partnership in Japan terminated. These issues were amplified by macroeconomic headwinds, including rising interest rates and consumers switching to more budget-friendly skincare treatments.

In March 2025, Cutera commenced voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code. The company filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The California-based medical aesthetics device maker took a series of steps to restructure its debt. It adopted a prepacked restructuring plan to significantly deleverage and raise new capital. The new capital raised included $30 million in an equity rights offering and $25 million ofdebtor-in-possession (DIP) financing. A restructuring support agreement was also entered into between the company and a majority of the company’s senior noteholders.

In May 2025, Cutera emerged from Chapter 11 bankruptcy with a stronger capital structure. The company was able to reduce its debt by $400 million, or over 90%. It also raised $65 million of new capital from existing lenders. Cutera emerged from the Chapter 11 process as a private company. The company was previously a publicly traded company on Nasdaq.

Cutera has been in operation for over 25 years. Its signature devices include AviClear, an FDA-cleared laser for treating acne, and truSculpt, an advanced system for body sculpting and fat reduction. It also makes devices for laser hair removal, vascular pigment removal, and skin revitalization. In addition to making devices for medical professionals, the company maintains a global sales network spanning over 30 countries.

In 2024, Cutera reported revenue of $138 million, a significant decline from the previous year. Cutera has approximately 350 employees globally, most of which are located in the United States.

Cutera’s emergence from bankruptcy has been a positive reset for the company. Under the leadership of CEO Taylor Harris, the dermatology technology company is focused on its long-term growth. However, the company will need to stay financially disciplined in order to prevent repeating the same mistakes.