Employer.com Rescues Bench After Sudden Shutdown
In an unexpected turn of events, the accounting startup Bench, which left thousands of customers stranded due to a sudden closure, has found a lifeline. TechCrunch has learned that Employer.com, an HR tech firm from San Francisco, has stepped in to acquire Bench for an undisclosed amount. Unlike Bench’s focus on accounting and taxes, Employer.com specializes in payroll and onboarding.
Matt Charney, Employer.com’s Chief Marketing Officer, shared with TechCrunch that the company plans to revive Bench’s platform promptly. Customers will soon receive instructions on accessing their accounts and data. They will have the option to either transfer their data or continue their services under new management.
“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,” said Employer.com in a statement.
{Employer.com}
Previously, Bench had advised its customers to seek a six-month extension with the IRS to find new bookkeeping services. However, with this acquisition, such measures are unnecessary if clients choose to stay with Bench under its new ownership.
Before going offline, Bench’s website claimed over 35,000 small business owners as clients. Currently, it states: “More information on how to continue your services will be available soon.” The abrupt shutdown last Friday threw many into chaos as customers were locked out during a crucial tax period.
- Emails to Bench employees bounced back, further fuelling customer frustration.
- TechCrunch confirmed the acquisition through a Bench board member.
- The financial terms of the acquisition remain undisclosed.
Employer.com is relatively new on the scene. CEO Jesse Tinsley acquired the domain name recently and is known for establishing various HR and recruiting-related businesses. Notably, Employer.com is self-funded and not reliant on VC backing.
Despite this positive development for customers, challenges remain. Bench had a workforce exceeding 600 people, some of whom began seeking employment after the shutdown. However, efforts are underway to bring employees back to ensure service continuity.
“Bench’s employees are being called back to work,” confirmed Jennifer Bouyoukos, Bench’s Chief People Officer.
{Jennifer Bouyoukos}
This acquisition marks a significant step towards stabilizing services for Bench’s clientele while promising potential improvements thanks to Employer.com’s resources and expertise.
