Home Business Startup Jeff files for bankruptcy after not paying paychecks for nine months

Startup Jeff files for bankruptcy after not paying paychecks for nine months

Jeff lands a $90 million investment

Jeffthe Valencian startup founded in 2015, has voluntarily filed for bankruptcy after nine months of non-payment to employees and a failed round of financing, according to a report by La Información. The Commercial Court No. 2 of Valencia has appointed an insolvency practitioner who will intervene in this process.

Last February, the company announced the closure of one $83 million financing round comprised of a combination of equity and debt. It has been backed by funds such as DXVentures, Clean Ventures, Stelac, Prism and existing partners including Nalpa and Alcor, led by the company’s President, Javier Rubió. Ultimately, this round was not carried out.

On the other hand, the company’s total debt has not yet been determined, although it is worth noting. From 2020 and October 2022, Jeff has losses worth around 65 million euros.

Jeff’s debt restructuring

As announced by the commercial register office, the startup filed for voluntary insolvency on May 19. The PKF Attest Insolvency SLP office will be responsible for managing the company’s assets. From now on, the procedure for a possible liquidation, or at least a sanitation of all accumulated debts, begins.

Affected are Jeff’s workers, who have not made any payments since September. At this point the payments stopped. The management of the company, headed by CEO Eloi Gómez, justified this by saying that it had not been able to close a funding round that had dragged on over time, causing the entrance to continue to be postponed.

A few weeks ago, as La Información has already pointed out, another hundred workers were laid off, who also received neither compensation nor back payments. Thus, the number of staff remained at a minimum. Finally, the insolvency proceedings were officially opened. Now the admin has to manage the situation and decide if the competition is guilty or if it is a guilty or accidental competition.

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