A clearer picture of Fall of bench will appear thanks to newly released Bankruptcy recordings.
The records show that the Canadian-based startup, which ironically sufficiently offered a cloud accounting program for small businesses, has constantly struggled to achieve profit. It burned with $ 135 million from its founding in 2012 to September 2024.
Before the time of its collapseA bench was forced to close due to a “liquid crisis”, the records say. Bench had $ 800,000 in money in its Canadian account during a separate account for its US entity had less than $ 400,000.
Bench has made some progress in cutting his burn in recent years, the films show. Improving funding was the main mission of Bench’s second general manager, Bench’s former CFO, who took over in 2022 and began making layoffs, According to a former staff.
For example, Bench lost nearly $ 30 million at $ 42 million in revenue from March 2022 to March 2023. But a bench cut its losses in half the next fiscal year while increasing revenue to $ 49 million.
But that was not enough to stop the losses of a bench accumulated. As the company struggled, in June 2024, Bench’s largest lender, the Private National Bank of Canada, made more than $ 40 million in loans available to Bench, By the archiving.
That gave Bench some time to buy himself for sale, the task of its third general manager. And NBC appeared on board: December 12, 2024 – just 13 days before Bench’s collapse – NBC signed a new funding agreement and ban with a bench, the archiving says, meaning it agreed to temporarily pause or modify the loan repayment bonds of the beginning.
The records do not specify exactly why a bench closed just two weeks later. Bank – maybe NBC – called in the Bench’s corporate debt, the information Reported. Rookie Reported This NBC refused to make other concessions because a bench was purchased around.
NBC did not respond to a request for a Techcrunch comment. NBC is owed $ 51 million With a bench and this number continue to accumulate due to interest and other fees, the registration notes.
Independently, bench is now on a new road after US based employer.com suddenly announced It planned to get the start just 72 hours after its collapse. This process is based on an agreement that “contemplates” closing date of February 28, 2025, according to the archiving.
However, Bench’s bankruptcy offers a window to the dangers of too much debt for startups. And lending debt lenders will play Big role in the fire sales and starting stops It is expected to continue at a quick clip this year, experts say.
