Bench, a company that had been striving to reduce its financial losses, has been forced to shut down due to a liquidity crisis. Recent bankruptcy filings reveal that despite efforts to curtail its financial burn, Bench could not sustain its operations. The company had been exploring potential sales options under the leadership of its third CEO but was ultimately unable to avert its closure when a bank, possibly the National Bank of Canada (NBC), called in its venture debt.
From March 2022 to March 2023, Bench reported a loss of nearly $30 million against $42 million in revenue. In the subsequent fiscal year, however, the company managed to halve its losses and increase revenue to $49 million. Despite these improvements, Bench found itself with only $800,000 remaining in its Canadian account and less than $400,000 in a separate U.S. account.
Since its founding in 2012, Bench had burned through $135 million by September 2024. In an attempt to stabilize its finances, NBC extended over $40 million in loans to Bench in June 2024. Furthermore, NBC signed a new funding and forbearance agreement with the company on December 12, 2024, with a closing date set for February 28, 2025.
Despite these financial maneuvers, Bench continued to struggle with profitability. Bankruptcy records reveal that NBC is owed $51 million by Bench, an amount that continues to increase due to accumulating interest and fees. The ongoing financial strain left Bench with limited options, ultimately culminating in the company's shutdown.
In a turn of events, US-based Employer.com announced its intention to acquire Bench. This acquisition marks a new chapter for the startup, offering hope for a fresh beginning after a tumultuous financial history.
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