News Summary

Bench, a Canadian accounting and tax startup, faced a sudden shutdown over the holidays, leaving its customers and employees in chaos. The company, which raised $113 million from investors including Bain Capital Ventures and Shopify, went offline without notice, laying off hundreds of employees and leaving 12,000 customers unable to access their accounts. The shutdown was attributed to a bank calling in Bench’s venture debt. Bench had struggled with automation efforts and experienced executive turnover, contributing to its decline. However, following significant media attention, Bench was acquired by Employer.com, an HR tech firm based in San Francisco, reviving the company. Employer.com is re-extending job offers to former Bench staff and plans to honor customer contracts. Despite the acquisition, uncertainties remain about Bench’s sustainability and service quality due to the rapid acquisition process and Employer.com’s lack of accounting experience.