Cash-starved Look Communications cuts 125 more jobs
Toronto - Look Communications Inc., an Internet and digital TV service provider that has been struggling to overcome a severe cash crunch since last year, is cutting another 125 positions, the company said Monday.
"Look is continuing discussions with financial institutions and other parties to secure additional sources of financing to fund its revised business plan," the company said in a brief statement.
The announcement comes 11 days after the company said it had struck a deal with its main investors, BCE Inc. and Telesystem Ltd., that gave Look two more weeks to seek new financing and avoid collapse.
BCE Inc. and Telesystem agreed to lend Look the $98 million that it owed to its bankers. The two Montreal-based telecom companies also gave Look until Aug. 25 to get new financing or explore other alternatives.
Look, based in the Toronto-area community of Milton, ran out of cash trying to build a national wireless network using line-of-sight antennas -- an alternative to satellite or cable service.
In December, the company cut 300 jobs -- about 35 per cent of its work force at the time -- in its first major downsizing.
Since then company has sold some of its assets, narrowed its business focus and attempted to find new financing.
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