There is a clearer picture of the fall of the bench due to the newly released Bankruptcy reports.
Documents show that the Canadian startup, which paradoxically offered the cloud accounting software for small firms, consistently tried to realize profitability. He burned $ 135 million by assumption in 2012 to September 2024.
The documents say that until the fall of Bench was forced to shut resulting from the “fluidity crisis”. Bench had USD 800,000 in money on his Canadian account, while a separate account for his American entity had lower than USD 400,000.
Writing shows that Bench has made some progress in limiting the burn. The improvement of funds was the fundamental mission of the second general director of Bench, former financial director of Bench, who took over in 2022 and began dismissal, in response to former staff.
For example, Bench lost almost $ 30 million at $ 42 million revenues from March 2022 to March 2023. But Bench reduced losses in half the following financial 12 months, and revenues as much as $ 49 million.
But it was not enough improvement to stop Bench’s losses after accumulation. When the company fought, in June 2024 the largest lender of the bench, a private National Bank of Canada, granted over $ 40 million loans for a bench, According to the application.
This gave the bench some time for shopping for sale, the task of its third general director. And the NBC appeared on board: December 12, 2024 – just 13 days before the fall of the bench – NBC signed a recent financing agreement and understanding with the bench, provides a notification, which suggests that it agreed to temporarily stop or modify the loan repayment obligations.
The records do not specify exactly why the bench closed just two weeks later. Bank – Probably NBC – called the project’s debt, information Reported. Newcomer Reported The incontrovertible fact that NBC refused to make other concessions as the bench was purchased.
NBC didn’t answer the request for comment from TechCrunch. NBC is guilty of $ 51 million in response to the bench, and this number is still calculated resulting from interest and other fees, complex notes.
Regardless, Bench is now on a recent path after an American worker suddenly announced that he planned to purchase a startup just 72 hours after his collapse. This process is based on an agreement that “considers” the closing date of February 28, 2025 in response to the application.
Despite this, bankruptcy Bench offers a window for danger of too much debt for startups. Experts say that lenders of the project’s debt will play a big role in the sale of fireplace and startup closures, which are to be continued with a quick clip this 12 months.