Things continue to deteriorate for the HTC. The Taiwanese OEM has reportedly halted production at one its four main manufacturing plants, according to a report from Reuters.
The factory being closed accounts for at least a fifth of total capacity, and Reuters said that closing has put pressure on HTC's cash flow.
The news comes after HTC earlier this month reported its first ever quarterly loss. THe company marked down a $101 million loss on revenue of $1.6 billion for the most recent quarter.
The company has struggled to find its feet in a smartphone market dominated by Samsung and Apple. According to ComScore, HTC's U.S. market share slipped almost a percentage point from the three-month period ending in April at 8.9 percent, to just 8 percent in the the three-month period ending in July.
Aside from flagging device sales, HTC has been plagued by other bad news of late, including delays of its HTC One Mini, possible layoffs and even the prospect that the company be looking to sell itself off.
Bloomberg recently reported that Microsoft was in talks with HTC to possibly add its Windows operating system to HTC's Android phones.
Citing people familiar with the matter, Bloomberg reported that Microsoft's Terry Myerson asked HTC to load Windows Phone as a second option on the Android handset. Myerson supposedly offered the possibility of "cutting or eliminating" the licensing fee Microsoft charges to use its operating system.