Bench, the accounting startup that imploded over the holidays, filed for chapter in Canada on January 7 revealing huge money owed, paperwork seen by TechCrunch present.
The filings — one for Bench and one other for 10Sheet, Bench’s unique title — present that Bench had $2.8 million in money available by the top of its life however $65.4 million in liabilities. (TechCrunch transformed the chapter submitting information from Canadian to U.S. {dollars} at a price of $1 USD to $1.44 CAD.) Based in 2012, Bench had raised $113 million from buyers like Shopify and Bain Capital Ventures.
Most of Bench’s debt — $50 million — is owed to the Nationwide Financial institution of Canada, one among Canada’s largest industrial banks. Greater than 85% of that debt is unsecured, that means the financial institution has little collateral to say in opposition to the mortgage now that Bench has defaulted. That debt could have helped immediate Bench’s sudden shutdown: Tech publication Newcomer reported that NBC declined to make concessions to Bench because it was being shopped round on the market. NBC didn’t instantly reply to a request for remark.
The chapter filings additionally reveal monetary obligations to Bench’s VC buyers, cut up between convertible notes (which are supposed to convert to fairness) and direct shareholder loans. Bench owes $1.3 million to Bain Capital Ventures, whose associate Sarah Hinkfuss was appointed to Bench’s board in 2023, according to a press release. Bench owes one other $1.2 million to Canadian VC Inovia Capital, whose executive-in-residence Adam Schlesinger was appointed as Bench’s final CEO, the filings present. Contour Enterprise Companions, a New York-based VC which led Bench’s $60 million Sequence C spherical, is owed about $750,000. California-based Altos Ventures, one other investor, is owed $777,000. All of this VC-related debt is unsecured, the filings state.
Bench’s different money owed embrace $1.8 million in severance pay to former workers, the paperwork say. TechCrunch beforehand reported that Bench’s staff were suddenly let go on December 27 with no discover or severance supplied. (Bench’s new proprietor, Employer.com, says it has re-hired a large number of staff, however advised TechCrunch they’re quickly on 30-day contracts as Bench types out its points.)
Bench owes tens of 1000’s of {dollars} in severance pay to former executives too: CEO Jean-Philippe Durrios, CRO Todd Daum, and CFO Mor Lakritz are all listed within the filings. Lakritz’s LinkedIn signifies Bench had about $50 million in annual recurring income.
Lastly, the chapter filings present Bench owes $4 million in unpaid hire to Canadian actual property company Morguard, most definitely for its workplace. At its peak, Bench employed over 600 folks. Past the cash owed to workers, workplace area and about $1.5 million (by our back-of-envelope math) as a consequence of a scattering of anticipated collectors, like SaaS enterprise software program suppliers, the filings don’t present how the remainder of the cash was spent.
As Bench works its means by way of chapter, additionally it is within the strategy of being acquired by San Francisco-based HR tech firm Employer.com. Though its clients have additionally advised TechCrunch that Employer.com is requiring them to turn their data over to Employer, or threat dropping it.
Gary Levin, head of company improvement for Employer.com, advised TechCrunch that the Canadian court docket is overseeing Bench’s insolvency proceedings and can supervise the distribution of proceeds to collectors. He emphasised that Employer.com has a powerful steadiness sheet that permits it to spend money on Bench considerably transferring ahead.
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