Bench Accounting Shuts Down, Then Gets Acquired
Bench Accounting, a Canadian fintech startup, abruptly shut down on December 27, laying off hundreds of employees without notice or severance. The shutdown, caused by a bank calling in venture debt, occurred just as tax season began, leaving thousands of small business customers stranded. The company had struggled with automating its accounting processes, leading to customer churn and financial difficulties. For more on tech industry challenges, see Apple Intelligence News Summaries: Accuracy Concerns.
Bench's shutdown followed executive turmoil, including the departure of its founder and multiple CEO changes. The final CEO, Adam Schlesinger, was brought in to oversee a sale of the company, but the initial attempt failed. Ironically, the publicity surrounding the shutdown attracted new interest, leading to a quick acquisition by Employer.com, an HR tech firm. This situation mirrors other recent tech acquisitions, such as Apple Settles Siri Privacy Lawsuit.
Employer.com, with no prior accounting experience, plans to revive Bench, rehiring many former employees and honoring existing customer contracts. However, uncertainties remain about Bench's long-term viability given the rushed acquisition and the lack of due diligence. Some rehired employees are reportedly being offered only 30-day contracts, raising concerns about service quality. This rapid shift in ownership is reminiscent of Apple's New CFO: Kevan Parekh Takes the Reins, highlighting the rapid changes in leadership within the tech industry.