Toronto-based Syncapse has filed for Chapter 15 bankruptcy protection in US federal court.
The Canadian social media marketing management company, one of Facebook's "preferred marketing developers," had raised a staggering $45 million but was forced to lay off roughly half of its 154 staff members this week due to multiple years of losing millions of dollars annually.
According to the company's bankruptcy filing, it has 100 to 200 creditors and $10 to 50 million in assets as well as liabilities of $1 million to $10 million, according to the court file. Syncapse has lost more than $6 million so far this year, according to court documents.
"Despite our best efforts, the organization lacks the resources to move forward successfully and as such must enter a period of restructuring," company founder and CEO Michael Scissons told employees in an email obtained by CBC News. "This unfortunately means that effective today, we are laying off a significant number of our worldwide employees and ending go-forward development for our platform."
"The objective of this process is the continuation of the company, whether purchased or restructured, to continue to support our client relationships and provide continued (or renewed) employment for our team members," Scissons wrote.