Arch Therapeutics, Inc. has initiated bankruptcy proceedings under Chapter 11, filing voluntary petitions alongside its subsidiary, Arch Biosurgery, Inc., in the United States Bankruptcy Court for the District of Massachusetts. The company continues operations as a debtor-in-possession and has accepted a stalking horse bid for the sale of substantially all its assets, with the possibility of higher offers. A hearing to approve the asset sale is scheduled for June 20, 2025. The bankruptcy proceedings may lead to the cancellation of all equity securities without any recovery to shareholders. The court has authorized Arch Therapeutics to secure postpetition financing and use cash collateral, granting liens and superpriority administrative expense status. The company aims to confirm a Chapter 11 plan of liquidation, including a Section 363 sale of its assets free of liens and claims, within seven weeks. Vivex Biologics, Inc. has been designated as the stalking horse bidder, with a credit bid of up to $900,000 in DIP obligations and additional cash commitments.