Supply chain tracking company Savi Technology on Tuesday said it has decided to close its commercial software business and file for bankruptcy to better enable it to restructure and focus on its government contracts.

News of the Chapter 11 bankruptcy filing was first reported by Washington Business Journal, which said the company is more than $2.5 million in debt to its largest creditors.

Savi supplied radio frequency-based technology and related software to track logistics and supply chain movements for its customers. The Northern Virginia-based company’s products include tags, readers, satellite communications and portable deployment kits.

Savi is the only awardee on the Defense Department’s $42 million active RFID V contract and has been supplying the department with RFID technology for decades to track the location and condition of in-transit supplies and equipment.

Savi said it will continue to honor its commitments.

“We expect to reorganize and emerge from bankruptcy as a stronger and leaner operation,” Sean McGuinness, Savi’s chairman, said in a statement.

Chapter 11 of the U.S. bankruptcy code allows businesses to reorganize and pay off its creditors over time.