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Bench, a Canadian accounting startup backed by $113 million in venture capital, abruptly shut down on December 27, 2024, leaving thousands of small business owners unable to access their accounts during tax season. The shutdown followed multiple rounds of layoffs and issues with their AI and automation strategies, which failed to deliver promised efficiencies.
The sudden closure was caused by a bank calling in their venture debt, leading to immediate layoffs without severance. However, media attention surrounding the shutdown prompted interest from potential buyers. Jesse Tinsley, CEO of Employer .com, quickly negotiated a deal to acquire Bench, saving many jobs and customer accounts.
Despite the acquisition, uncertainties remain about Bench's future, including concerns over service quality and the lack of prior accounting experience at Employer .com. The company plans to rehire former staff and honor existing customer contracts but faces challenges in ensuring a smooth transition.
