King Air Conditioning went bankrupt in 2016, leaving its employees to try to salvage the company.
Now, that effort is coming to an end.
The company announced Thursday it will close its doors and is laying off employees in order to pursue its plans to spin off its business.
The King Air Cleaners and Maintenance (KAECM) unit will be spun off from the King Air division.
“KAECm is a technology company that has achieved a great deal of success over the last decade, and we have a great sense of the future of the company,” the company said in a statement.
“The team will now focus on developing the new business, and focusing on our new strategic priorities.”
King Air is no stranger to bankruptcies.
In 2016, the company announced that it had reached a $1 billion settlement with the U.S. government over a program it ran to subsidize air conditioning in certain regions of the country.
King Air was the second-largest air conditioning manufacturer in the world.
The deal, which King Air made with the government, also covered its air conditioning costs and other operating expenses.
But in January 2019, King Air went bankrupt.
The business went under after more than a year of bankruptcy court battles, and the company is currently seeking a new, long-term lease from the city of Los Angeles.
The news of the KingAir sale came just a few days after the company filed for Chapter 11 bankruptcy protection, which allowed it to take advantage of a $2.4 billion loan from the U,S. Treasury.