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Calgary Herald
09-07-2025
- 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.
CBC
07-07-2025
- Business
- CBC
'Sometimes it doesn't work out': Calgary tech community reacts to ATTAbotics insolvency
Social Sharing Long considered a highlight of Calgary's tech scene, local robotics company ATTAbotics is now restructuring as it deals with insolvency. That restructuring includes terminating 192 of its 203 employees, keeping only 11 as it navigates the road ahead, according to documents published by insolvency trustee firm Richter Inc. Founded in 2016 by Scott Gravelle, ATTAbotics had carved a name out for itself not only in Calgary but internationally, working with the likes of Microsoft, Accenture and the United States Department of Defense. Neither Gravelle nor ATTAbotics responded to requests for comment ahead of publication. Several terminated employees declined interview requests. The company's financial troubles came as "sad news" to Terry Rock, president and CEO of tech hub Platform Calgary. "It's always surprising when a company that has something so cool doesn't make it for whatever reason," he told CBC News. ATTAbotics designed a robotics supply chain management system in which robots store and grab warehoused goods, with the goal being to boost shipping efficiency and streamline warehouse operations. The concept was a hit with funders: by the end of 2022, ATTAbotics had received over $200 million, including over $97 million in funding led by Export Development Canada along with the Ontario Teachers' Pension Plan Board in 2022, $34 million through the federal government's Strategic Innovation Fund in 2020, and $4.5 million from the Opportunity Calgary Investment Fund in 2018. Documents published by Richter say that ATTAbotics, "as an early-stage technology company, has never achieved profitable operations," with annual losses of $49.5 million in 2024 and $43 million the year prior. As of March 31 this year, the assets of ATTAbotics are valued at $31.6 million, while its total liabilities are approximately $73.8 million, according to the documents. On July 2, ATTAbotics filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act, which gives the organization time to figure out its restructuring plan and come up with a proposal for creditors. The company's 11 remaining employees are considered essential to the company's restructuring, according to the Richter documents. A longtime promoter of Calgary's innovation scene, Rock said the city's tech sector growth comes with both wins and losses. "In the world of technology innovation, these people are taking big risks," he said. "They're trying to change the world with what they're doing, really exciting ideas and technologies, and sometimes it doesn't work out." According to its website, ATTAbotics at one time had over 300 employees. Former employee discusses 'challenges' at company Former ATTAbotics project manager Andrew Rockwell, who left in 2024 after nearly six years, told CBC News that there had been "internal struggles" at the company. "There were ongoing challenges at the company in kind of getting out of that startup status and commercializing the product that ATTAbotics was making," he said. "I kind of felt that the momentum forward was slowing. We were having a hard time getting off the ground." He said he was "really proud" of his work at ATTAbotics, adding that he made sure to keep in touch with former colleagues. "Seeing how things played out, I guess I'm glad I left when I did," he said. "But it still is a sad thing for me, even as an outsider now, to be seeing what's happened to the company." Rockwell hopes the employees that were let go are able to continue contributing to the city's tech scene. "I would love to see all of those excellent people land other great jobs here in Calgary … working happily here in the city, supporting a tech industry in the city," he said. He also hopes that the ATTAbotics technology "can rise from these ashes," especially to continue supporting customers that utilized it. ATTAbotics has about 150 granted and pending patent applications worldwide.
Globe and Mail
07-07-2025
- 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
04-07-2025
- 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@
