Although it had lucrative contracts with the Galactic Republic, the company was rocked by a child labor scandal uncovered by Jedi Master Dooku and Padawan Qui-gon Jinn. The scandal resulted in the immediate termination of Republic contracts. With the loss of galactic-scale revenue, the company descended into bankruptcy, its facilities closed, and buyers were sought. Few corporations wanted Kontag's plants for fear of post-scandal reprisals. Most operations ended up being abandoned,
Mostly forgotten, a handful of Kontag facilities were reactivated after the collapse including:
- (Pirin System) KonGar Toska Works, which was a secret Confederacy of Independent Systems production facility for Trionex. The facility is no longer in operation and has been abandoned.