TechShop Files Chapter-7 bankruptcy protection @techshop #techshop #makerbusiness
TechShop Files Chapter-7 bankruptcy protection, here are the 4 PDFs (1) and (2) and (3) and (4) and (5). Interesting read and deconstruction if you’re a biz or law hobbyist. If more details come in, we’ll post them. Looks like they end with ~$38m in debt.
Announcement From The TechShop Board of Directors
After more than 14 weeks of thoughtful negotiation with our secured creditors and prospective acquirers of TechShop assets and secured debt TechShop’s Board announced that TechShop, Inc. filed for Chapter-7 last night.
On November 15, 2017 TechShop announced that it was forced to close its doors due to insolvency and would file for Chapter-7 bankruptcy protection. Just prior to the planned filing, however, an investor approached TechShop’s Board of Directors to express his interest in acquiring the company’s assets and re-opening most if not all TechShop locations. Because there was every indication that the investor’s concept, if successful, would benefit former employees, instructors, members, and investors, the Board postponed its planned Chapter-7 filing and immediately began working with the investor and secured creditors Autodesk and Lowe’s to develop an amicable arrangement.
TecShop’s Board has concluded that an agreement between the other parties is no longer imminent, and that the time has come to file Chapter-7 and bring some finality to the wind-down process.
An enormous amount of time, energy and careful thought went into trying to identify a solution that would benefit as many stakeholders as possible. Throughout the past three months the Board of Directors has been open to any arrangement that would benefit employees, contractors and creditors, while also complying with relevant laws and regulations.
In the final analysis, it was not to be. Nonetheless, we believe the purpose was worth the effort.
The Board also wants to extend its appreciation for your patience. We are well aware that this has been an extremely frustrating process for everyone involved. From the outset we’ve held to a policy of avoiding unhelpful speculation or commenting publicly about negotiation terms.
The Board has worked for the past several years to stabilize the TechShop business so that it could continue to serve members and communities. We deeply regret that we were not able to find a way to do so. We also regret the impact the failure of TechShop has had on the employees, contractors, partners, suppliers, lenders, and investors who were critical to providing this capability to the community. We continue to believe strongly in the value of maker spaces, and we wish for the success of those looking for ways to create new ones.
Very Truly Yours
TechShop Board of Directors
Enlace: TechShop Files Chapter-7 bankruptcy protection @techshop #techshop #makerbusiness