A research based consulting firm started by Newt Gingrich has found itself in financial trouble in recent months. After racking up nearly $10 million in debts to creditors the firm filed for business Chapter 7 protection earlier this week.
The Gingrich Group
Pioneered by the former House Speaker Newt Gingrich in 2008, the firm was designed to assist organizations create and implement strategies for change in the field of science. Using new technologies and “transformational opportunities”, the Gingrich Group offered clients a team of industry experts to assist in their planning and building of groundbreaking methods in the field of healthcare, education, safety and technology.
Carrying themselves as a “think-tank” for industry advancement, the Gingrich Group has been largely funded through a membership, or charter, based system. Despite having acquired more than $55 million in revenue from 2001 to 2010, the company is no longer to sustain profitability and maintain the level of service promised to clients. Conducting workshops and seminars, training staff, consulting for upper level executives and managing research labs around the country is no longer as lucrative as it has been in the past. Since their bankruptcy filing earlier this week, speculation is swarming about the fate of Gingrich’s personal financial standing, much of which is tied up in the consulting group.