The abrupt closure of Canadian accounting startup Bench caused chaos for thousands of small business owners and employees, leaving many scrambling during a critical tax preparation period. However, just days after the shutdown, a last-minute acquisition by Employer.com revived the company, promising continuity but raising questions about its future.
Bench, which raised $113 million from investors like Bain Capital Ventures and Shopify, shut down unexpectedly on December 27 after 13 years in operation. Its website displayed a closure notice, leaving over 12,000 customers without access to their accounts. Hundreds of employees were laid off immediately without severance or prior warning, with emails to company accounts bouncing back. The shutdown coincided with a venture debt recall by Bench’s bank, according to reports.
The decision caught even prominent customers by surprise. Justin Metros, co-founder of Radiator and a featured client, only learned of the shutdown through media outreach. “I’ve never seen anyone just shut down like that. That’s crazy,” he remarked.
Internal Struggles and Leadership Turmoil
Bench’s collapse was attributed to struggles with automation, leadership transitions, and customer retention. Former employees revealed that attempts to scale through AI-driven tools backfired, leading to inefficiencies and delays. Some clients were still waiting for 2023 financial records as late as September 2024, well beyond tax deadlines.
Leadership upheaval compounded the company’s troubles. Co-founder and original CEO Ian Crosby departed in 2021, citing disagreements with board members. Successive CEOs aimed to steer the company toward profitability, but execution issues and waning investor interest derailed efforts. The final CEO, Adam Schlesinger, took over in November 2024 to oversee a sale process but ultimately presided over the shutdown.
A Rapid Revival
Media coverage of Bench’s closure unexpectedly triggered interest from potential buyers. Jesse Tinsley, CEO of San Francisco-based Employer.com, initiated a deal while on vacation in Florida after learning of the shutdown. In under 72 hours, his team finalized the acquisition and announced plans to revive Bench, citing a commitment to saving jobs and supporting customers.
Employer.com has since re-extended job offers to a significant number of former Bench employees and pledged to honor customer contracts. However, some rehired staff received only 30-day contracts, which Bench’s Chief People Officer, Jennifer Bouyoukos, described as a temporary measure to ensure operational continuity in Canada.
Despite Employer.com’s reassurances, concerns linger. Accounting presents unique challenges, and Employer.com, primarily focused on payroll and HR technology, lacks direct experience in this domain. The rushed nature of the acquisition left limited time for due diligence, prompting questions about the sustainability of Bench’s revival.
Employer.com’s Chief Marketing Officer, Matt Charney, expressed confidence in Bench’s reputation and talent pool, stating that the expertise within the acquired team would help the company adapt quickly. Still, skepticism remains among industry observers and customers about whether Bench can fully recover and maintain service quality.
Bench’s collapse and subsequent revival highlight the challenges of scaling AI in accounting and the risks of abrupt closures. As Employer.com works to rebuild the company, stakeholders will closely watch how it navigates the transition.
Featured image courtesy of TechCrunch
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