Bench’s Abrupt Shutdown: A Last-Minute Acquisition by Employer.com
In a surprising turn of events, Bench, the VC-backed accounting startup that left thousands of customers locked out of their accounts after its sudden shutdown last week, will be acquired by Employer.com for an undisclosed price. This last-minute deal has been exclusively confirmed by TechCrunch.
The Shutdown and Its Consequences
Bench’s website was still offline at the time of writing, with a message that read: "More information on how to continue your services will be available soon." However, it is believed that Bench employed more than 600 people before shutting down. The abrupt closure caused chaos among customers, who found themselves locked out of their accounts right as tax season was set to begin.
The Acquisition
Employer.com, a San Francisco-based HR tech company, focuses on payroll and onboarding services. In contrast, Bench specialized in accounting and tax services. According to Matt Charney, Employer.com’s chief marketing officer, the company will revive Bench’s platform and provide instructions for customers to log in and obtain their data.
Customers’ Options
Customers will be given the choice to port their data or keep their service under new ownership. This is a significant change from Bench’s previous recommendation to file for a six-month extension with the Internal Revenue Service (IRS) to look for a new bookkeeper. Employer.com has confirmed that this option is no longer necessary for customers who decide to stay on.
The Numbers
Bench’s website, according to an archived copy, previously touted more than 35,000 "American small business owners" on its platform. However, in a post-publication statement, Employer.com corrected this number to approximately 12,000 customers.
Employer.com: A New Player in the HR Tech Space
Employer.com is a relatively new company, with its CEO, Jesse Tinsley, announcing his acquisition of the domain name in November for about $450,000. Tinsley is behind a host of HR, onboarding, and recruiting-related businesses, including Recruiter.com and BountyJobs. Employer.com is not VC-backed and is entirely self-funded, according to Charney.
The Acquisition Price
Neither Bench nor Employer.com would comment on the acquisition price. TechCrunch confirmed the acquisition with a Bench board member.
Bench’s Employees and Their Future
Bench employed more than 600 people before shutting down. Some of these employees posted on LinkedIn after the shutdown notice, stating that they were now looking for work. However, Jennifer Bouyoukos, Bench’s chief people officer, told TechCrunch that Bench is starting to call "many" – but not all – of its employees back to work to ensure continuity.
A Statement from Employer.com
Employer.com released a statement announcing the acquisition, stating that Bench customers can expect to continue working with the same expert in-house bookkeepers they know and trust. The company also stated that this acquisition ensures that Bench customers can continue relying on the same high-quality service they’ve always received, while also opening the door to future enhancements and capabilities powered by Employer.com’s extensive resources.
The Challenges Ahead
While this acquisition may provide some relief for Bench’s customers, it is uncertain how Employer.com will manage to maintain the quality of services provided by Benchmark. The company will need to navigate the complexities of integrating two different systems and ensuring continuity for its customers.
Timeline
- December 27: Bench’s original shutdown notice was posted on its website.
- November: Employer.com’s CEO, Jesse Tinsley, announced his acquisition of the domain name for about $450,000.
- December 11: Tinsley posted a statement saying that Employer.com is "still acquiring companies" in the HR space.
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