Artes Medical, makers of the permanent filler Artefill, has filed Chapter 7 Bankruptcy and may be forced to liquidate its assets. The Web sites for both Artes and Artefill are already shut down. This announcement follows the recent bankruptcy by Rhytec Inc, makers of Portrait. The firm cited reduced consumer spending on its cosmetic treatment due to the poor economy.

The San Diego-based medical technology firm said in an earlier SEC filing on November 21 that a liquidation of its assets and bankruptcy were in the offing due to a drop in sales of its treatment, an inability to raise funds, and a failed bid to negotiate with lender Cowen Healthcare Royalty Partners. Artes also disclosed last month that it had eliminated more than 100 jobs.

Among the events leading to its bankruptcy, Artes included the proxy battle it faced in August from dissident investors headed by a shareholder named H. Michael Shack. The so-called “Shack Group” revealed an interest to invest some $30 million into Artes, but the investors and company management never reached an agreement.

[Source: AP/San Diego Tribune]