Introduction
Bench announced the closure of its platform by publishing a message on its website, alerting the twelve thousand small company customers that it served.
The company, which has recruited several hundred people and has raised more than one hundred million dollars in funding, did not provide an explanation for the action; nevertheless, the technology news website The Information reports that a bank called in a venture debt loan.
Employer.com, a new company that specialises in workforce management and business support technologies, made the announcement that it had purchased Bench the following three days after the initial announcement.
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Industry Comments
“This acquisition ensures that Bench customers can continue relying on the same high-quality service they’ve always received, while also opening the door to future enhancements and capabilities powered by Employer.com’s extensive resources.”
Employer.com is the brainchild of CEO Jesse Tinsley, the man behind several HR, onboarding, and recruiting businesses, including Recruiter.com and BountyJobs.
Says Tinsley: “While the challenges Bench recently faced were unexpected, we recognized an extraordinary opportunity to integrate their capabilities into our own suite of solutions.
“By combining forces, we can create even more value for Bench’s loyal customers while extending the reach and impact of Employer.com’s offerings.”
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FAQs
1. Why did Bench close its platform?
Bench announced the closure of its platform, impacting its 12,000 small business customers, but did not disclose specific reasons. Reports from The Information suggest that a bank called in a venture debt loan, potentially contributing to the decision. Despite substantial funding of over $100 million, the platform ceased operations abruptly.
2. What happened to Bench after its closure announcement?
Three days after announcing its closure, Bench was acquired by Employer.com, a company specializing in workforce management and business support technologies. The acquisition signals a possible continuation or integration of Bench’s services under Employer.com’s framework.
3. What is Employer.com’s role in the aftermath of Bench’s closure?
Employer.com’s acquisition of Bench could provide an opportunity for its customers and employees to transition under the new ownership. Employer.com’s focus on workforce management and business support technologies suggests a strategic alignment with Bench’s core services, potentially revitalizing its offerings.
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Conclusion
Bench’s sudden closure highlights the volatile nature of startups, even those with substantial funding and significant customer bases. While the specifics remain unclear, reports of a called venture debt loan suggest financial struggles as a key factor. The acquisition by Employer.com, a company well-versed in business support technologies, may pave the way for Bench’s resources and clientele to find stability. For its customers, the transition under Employer.com could mean access to enhanced services aligned with the expertise of the new owner. This development underscores the importance of adaptability in the fast-evolving tech landscape.
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