Bench, a once-prominent fintech startup, filed for bankruptcy in Canada on January 7. Documents reveal the company left behind a staggering $65.4 million in liabilities, despite having $2.8 million in cash at the end of its operations. The startup's financial woes have had widespread ramifications, affecting numerous creditors and former employees.
The National Bank of Canada stands as the largest creditor, with Bench owing an estimated $50 million. Bain Capital Ventures and Canadian venture capital firm Inovia Capital are also among the creditors, owed $1.3 million and $1.2 million respectively. The company's financial troubles extend to unpaid severance pay amounting to $1.8 million, impacting former employees who were part of Bench's workforce that peaked at over 600 individuals.
At its height, Bench boasted about $50 million in annual recurring revenue. However, the company's downfall has significantly impacted its stakeholders. Bankruptcy filings reveal that over 85% of Bench's debt is unsecured, which could complicate recovery efforts for many creditors. This includes Contour Venture Partners and Altos Ventures, owed approximately $750,000 and $777,000 respectively.
Bench's debt situation further includes tens of thousands of dollars owed in severance pay to former executives, such as CEO Jean-Philippe Durrios, Chief Revenue Officer Todd Daum, and Chief Financial Officer Mor Lakritz. Additionally, the fintech startup owes $4 million in unpaid rent to Canadian real estate agency Morguard, highlighting the extensive reach of its financial obligations.
Despite the company's financial collapse, the new owner, Employer.com, has taken steps to re-hire a significant number of former Bench employees on 30-day contracts. This move indicates an ongoing effort to stabilize operations and potentially restructure the business under new management.
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