Bench, the accounting startup that burst on holidaysfiled for bankruptcy in Canada on January 7 revealing huge debts, documents seen by TechCrunch show.

The filings – one for the Bench and another for 10 sheetsthe original name of Bench – shows that Bench had $2.8 million in cash on hand at the end of its life but $65.4 million in liabilities. (TechCrunch converted bankruptcy filing data from Canadian to US dollars at the rate of $1 USD to $1.44 CAD.) Founded in 2012, Bench has raised $113 million from investors such as Shopify and Bain Capital Ventures.

Most of Bench’s debt — $50 million — is owed to the National Bank of Canada, one of Canada’s largest commercial banks. More than 85% of that debt is unsecured, meaning the bank has little collateral to claim against the loan now that the Bench has defaulted. That debt may have helped prompt the sudden closure of the Bench: Tech publication Reported by newcomer that NBC refused to make concessions to the Bench because it was being marketed for sale. NBC did not immediately respond to a request for comment.

The bankruptcy filings also reveal the financial obligations of Bench’s VC investors, which are divided between convertible notes (which are intended to be converted into equity) and direct shareholder loans. Bench owes $1.3 million to Bain Capital Ventures, whose partner Sarah Hinkfuss was appointed to Bench’s board in 2023, according to a press release. Bench owes another $1.2 million to Canadian VC Inovia Capital, whose executive-in-residence Adam Schlesinger TEACH as the last CEO of the Bench, the files show. Contour Venture Partners, a VC based in New York leading Bench’s $60 million Series C round, with debt of about $750,000. California-based Altos Ventures, another investor, is owed $777,000. All of this VC-related debt is unsecured, the filings said.

Bench’s other debts include $1.8 million in severance pay to former employees, the documents say. TechCrunch previously reported that The Bench staff was suddenly released on December 27 without notice or severance given. (Bench’s new owner, Employer.com, says it is also hiring more staffbut told TechCrunch that they are temporary on 30-day contracts while the Bench sorts out its issues.)

Bench owes tens of thousands of dollars in severance pay to former executives as well: CEO Jean-Philippe Durrios, CRO Todd Daum, and CFO Mor Lakritz are all listed in the files. said Lakritz LinkedIn indicates that Bench has about $50 million in annual recurring revenue.

Finally, bankruptcy filings show Bench owes $4 million in unpaid rent to Canadian real estate agency Morguard, presumably for its office. At its peak, the Bench employed over 600 people. On top of the money owed to employees, office space and about $1.5 million (in our back-of-envelope math) due to the dispersion of expected creditors, such as SaaS business software providers, the filings do not show whether how is the rest of the money. spent.

While the Bench is working through bankruptcy, it is also in the process of which was obtained of San Francisco-based HR tech company Employer.com. Although its customers also told TechCrunch that Employer.com requires them to return their data to the Employer, or risk losing it.

Gary Levin, head of corporate development for Employer.com, told TechCrunch that the Canadian court oversees the Bench’s insolvency proceedings and will oversee the distribution of proceeds to creditors. He emphasized that Employer.com has a strong balance sheet that allows it to invest in Bench significantly going forward.