Financial disaster struck once-thriving fintech startup, Bench, when the company declared bankruptcy early this year. A string of official documents recently exposed a shocking financial crisis with Bench disclosing liabilities of $65.4 million against a mere $2.8 million in cash at the company’s end-stage.
Making up the bulk of this catastrophic debt is a staggering $50 million owed to the National Bank of Canada, with over 85% unsecured. This overwhelming debt has been earmarked as the potential cause behind Bench’s abrupt closure. The company has also been reported to owe considerable sums to key investors such as Bain Capital Ventures ($1.3 million) and Inovia Capital ($1.2 million).
On top of this, Bench’s documentation further discloses an owed $1.8 million severance pay to former employees and $4 million in unsettled rent for its office premises in Canada.
In the midst of bankruptcy reconciliation, Bench has now been acquired by HR technology company Employer.com, based in San Francisco. Despite the tumultuous transition, Employer.com, backed by a sturdy financial footing, promises to invest significantly in Bench’s future.
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