Latest news with #Attabotics
Calgary Herald
19 hours ago
- Business
- Calgary Herald
Calgary startup Attabotics' insolvency came amid falling revenues, creditor uncertainty
Robotics and automation startup Attabotics' bankruptcy protection filing came as its largest creditor intended to enforce its security on the company's debt, court documents show. Article content Founded in 2016 by CEO Scott Gravelle, the Calgary-based company terminated 192 of its 203 staff and ceased the majority of its operations on June 30. Article content Employees were terminated to minimize the business's cash outflow, or spending — the 11 remaining staff have all been identified as 'business critical' as the company proceeds with restructuring, according to documents filed with the Court of King's Bench of Alberta last week. Article content Article content As a result, the company filed a notice of intention to make a proposal under the act on July 2 to 'preserve the value of the business.' The company is not bankrupt; rather, the filing allows it time to restructure and stabilize the business. Article content Export Development Canada agreed to provide $1.5 million in emergency funding to cover 30 days of limited operations. Article content The extra time and funding are meant to allow the company 'breathing space and working capital' to solicit options to sell its assets or business, or seek out new investors over the 30 days, while developing a strategic plan. Article content Article content The documents indicate that Attabotics has been in discussions with 'various parties' regarding a potential sale of its assets, business, or refinancing — both before and following the notice of intention to enforce security was issued. Article content Attabotics amassed hundreds of millions in investment over a decade and created the world's first 3D robotics supply chain management system — replacing the traditional rows and aisles of fulfillment centres with its storage structure and robots. Article content However, the company had a 'tumultuous' 2024. Article content Constrained consumer spending, lower demands for eCommerce, global uncertainty and supply chain disruptions were among the factors contributing to the difficult year, the documents show. Article content Revenue decreased from over $11 million in 2022 to $3 million in 2024, when the company reported a net loss of over $49 million.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Export Development Canada out $46.3-million after pushing Attabotics into creditor protection
Federal crown agency Export Development Canada pushed Calgary robotics startup Attabotics Inc. into insolvency last month after the money-losing company failed to raise financing that would have enabled it to fund a spate of new business, according to documents filed with an Alberta court. The company, now down to nine employees after laying off most of its 200-person staff and suspending most of its operations on June 30, is now soliciting options to sell its assets or business over the next month. Attabotics last Wednesday filed an intention to make a proposal under the Federal Bankruptcy and insolvency Act, and two days later received approval from Judge John Gill of the Court of King's Bench of Alberta to obtain $1.5-million in interim funding from EDC, its largest secured creditor. The company had previously raised $220-million in financing from backers including EDC, Ontario Teachers' Pension Plan Board, Coatue Management and Comcast Ventures plus $34-million from the federal Strategic Innovation Fund. Robotics startup Attabotics files for bankruptcy protection - The Globe and Mail Attabotics, incorporated in 2016 and founded by CEO Scott Gravelle, made automation equipment used to fulfill orders that transforms product warehouses into high-density, vertical and scalable storage structures inspired by ant-colony frameworks. Instead of moving goods from aisle to aisle, Attabotics robots move up and down vertical structures, grabbing goods with extendable arms, then bringing them back to workers who prepare them for packing and shipping. Attabotics chair Edna Conway said in a sworn affidavit that after spending tens of millions of dollars annually on research and development the company in late 2022 attempted to accelerating deployment of its robotics warehousing system to new industries, customers and markets around the world. E-commerce had surged as consumer spending shifted online during the pandemic. The company worked at several sites across North America with customers such as Canadian Tire, Gordon Food Services, Pan Pacific Pet and Modern Beauty Supplies. But while revenue reached $11.4-million in 2022, 'revenues began to sharply decline' as interest rates shot up, constraining consumer spending and lowering demand for ecommerce, Ms. Conway wrote. That led some customers to delay planned projects with Attabotics, and revenues plummeted to $8-milliion in 2023 and $3-million in 2024. Last year the company amassed $44.4-million in operating expenses and lost $49.3-million. In the first quarter of 2025 Attabotics generated just $0.8-million in revenue and had $11.2-million of operating expenses, losing $12.5-million and ending the quarter with $6.3-million of cash and equivalents, down from $13.6-million a year earlier. Ms. Conway wrote the business did begin to stabilize by late 2024, resulting in $30-million of new business to be delivered in 2025 and 2026. That included a supply agreement signed with British grocery conglomerate Tesco. But when Attabotics tried to raise new capital to finance the orders, investors 'expressed concern with the applicants' cash flow challenges and elected not to participate in further financings,' she wrote, which caused a ripple effect across the investor community. That prompted the company to shelve financing efforts, which meant it couldn't proceed on delivering on the orders 'on the planned schedule,' she wrote. By the time EDC served Attabotics with a notice of intention to enforce security on June 18, the company was already in discussions with various parties regarding the sale of its business or assets – including 150 granted and pending patents. The new money 'is only sufficient to fund the applicants' business for a period of 30 days on a massively scaled down basis.' The company's three largest secured creditors are all federal crown corporations or agencies: EDC owed $46.3-million, followed by Business Development Bank of Canada, owed $2.8-million, and Western Economic Diversification Canada, which is out $2.5-million. The company has 131 secured creditors in addition to past and present employees.
Global News
6 days ago
- Business
- Global News
Calgary tech darling company suddenly shuts down, laying off hundreds of employees
A once darling member of Calgary's booming tech industry has filed for bankruptcy protection. The warehouse robotics company known as Attabotics suddenly terminated most of their staff earlier this week. The possible demise of the company — which claims on its website to have more than 300 employees — comes despite it receiving millions of dollars in investment and funding from both private and government sources. View image in full screen Calgary-based Attabotics designed and built robotic automated storage and retrieval systems for warehouses. Global News Attabotics was a self-proclaimed disruptor technology that used robots to automate supply management in vertical warehouses. Story continues below advertisement The federal government and the Ontario Teachers Pension Plan are amongst the organizations that gave Attabotics money or invested in it. 1:48 Homegrown Calgary company ATTAbotics gets $4.5 million in funding from city The city of Calgary gave it $4.5 million from its Opportunity Calgary Investment Fund. View image in full screen A notice posted on the door of Attabotics headquarters in northeast Calgary tells employees they will be getting 'termination' notice and 'do not go into the office.' Global News The employees — commonly referred to as 'Atta Peeps' — told Global News that they received a surprise email on Sunday, June 29, 2025, terminating their employment effective Monday and telling them not to go into the office. Story continues below advertisement The email was unclear whether severance or even employee expense claims would be paid, but the employees were were told to return all company property. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The official termination letters — more that 150 of them were expected — were sent out on Monday. View image in full screen Industry Canada confirmed to Global News that it has received Attabotics notice that it intends to file for bankruptcy. Provided to Global News On Tuesday, Industry Canada confirmed it had received the company's notice of intention to file for bankruptcy. View image in full screen Attabotics employees tell Global News they found out by email that they were being laid off, but there's no word on how that affects expenses they are owed or possible severance pay. Global News Attabotics has not responded to Global News' request for comment. Story continues below advertisement The company's CEO, Scott Gravelle, who once boasted of increasing revenues from tens of millions to hundreds of millions of dollars within a few months, now has a message on his LinkedIn account that describes him as a 'Recovering visionary. Taking a long deserved break.' There's no word yet either on what the company's financial troubles mean for clients who now have products potentially tied up in Attabotics defunct supply system. None of the clients or investors would provide comments to Global News.
Yahoo
02-07-2025
- Business
- Yahoo
Calgary-based robotics company Attabotics files for bankruptcy protection
Attabotics Inc., a Calgary-based robotics and automation startup, has filed for bankruptcy protection, according to multiple reports. The company, founded in 2016 by CEO Scott Gravelle, designs and manufactures an automated storage and retrieval system, using robotics. Attabotics reportedly had more than 300 employees, including about 250 in Calgary as of 2022. It is unclear how many, if any, of the tech company's hundreds of employees will keep their roles. At Attabotics' manufacturing facility near the Calgary International Airport, a Postmedia photographer observed a few employees leaving, wheeling out personal items. The employees declined to comment, but two were seen shaking hands and said 'good luck.' A printout on the door of the facility said the company filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act. 'Unless you have been spoken to directly about alternate arrangements to maintain your employment, this means that your employment will terminate effective June 30, 2025,' read the notice to staff. Filing a notice of intention allows financially troubled corporations the opportunity to restructure their affairs. However, a bankruptcy and insolvency records search conducted by Postmedia on Wednesday did not reveal any document results for Attabotics. The staff notice said employees would not be permitted on the premises as of Monday. 'On behalf of the Company, we take this opportunity to thank you for your contributions. We wish you success in your future endeavours,' read the notice. Postmedia attempted to contact Gravelle and several other employees, but did not receive a response. Numerous posts about the situation surfaced on social media, some from former employees. Many had listed their profiles as 'Open to Work.' Gravelle's LinkedIn bio read 'Recovering visionary. Taking a long-deserved break' as of Wednesday, although he was still listed as the company's CEO. Over the years, Attabotics amassed hundreds of millions in investment, $4.5 million of which was awarded through the Opportunity Calgary Investment Fund in 2018. The City of Calgary-led program is stewarded by Calgary Economic Development. The company has also received funding from the federal government and several private entities. From 2019 to 2022, Attabotics raised around US$165 million from various sources, namely a US$71.7 million Series C-1 fundraising round. Attabotics' storage and retrieval system was designed to reduce the amount of warehouse space needed through using a vertical storage structure. swilhelm@
Calgary Herald
02-07-2025
- Business
- Calgary Herald
Financial Post Calgary-based robotics company Attabotics files for bankruptcy protection
Attabotics Inc., a Calgary-based robotics and automation startup, has filed for bankruptcy protection, according to multiple reports. Article content The company, founded in 2016 by CEO Scott Gravelle, designs and manufactures an automated storage and retrieval system, using robotics. Article content Attabotics reportedly had more than 300 employees, including about 250 in Calgary as of 2022. It is unclear how many, if any, of the tech company's hundreds of employees will keep their roles. Article content Article content 'Unless you have been spoken to directly about alternate arrangements to maintain your employment, this means that your employment will terminate effective June 30, 2025,' read the notice to staff. Article content However, a bankruptcy and insolvency records search conducted by Postmedia on Wednesday did not reveal any document results for Attabotics. Article content Article content The staff notice said employees would not be permitted on the premises as of Monday. Article content 'On behalf of the Company, we take this opportunity to thank you for your contributions. We wish you success in your future endeavours,' read the notice. Article content Article content Numerous posts about the situation surfaced on social media, some from former employees. Many had listed their profiles as 'Open to Work.' Article content Gravelle's LinkedIn bio read 'Recovering visionary. Taking a long-deserved break' as of Wednesday, although he was still listed as the company's CEO. Article content Over the years, Attabotics amassed hundreds of millions in investment, $4.5 million of which was awarded through the Opportunity Calgary Investment Fund in 2018. The City of Calgary-led program is stewarded by Calgary Economic Development. Article content The company has also received funding from the federal government and several private entities. Article content
