Richmond moving startup WayForth has filed for Chapter 11 bankruptcy protection. The filing comes shortly after a restructuring that shuttered all of the company's operations outside of Virginia’s capital city.
The bankruptcy comes in the fallout of a failed merger and financing deal for the Richmond company, a transaction WayForth said in court filings it hoped would lift it from labor and inflationary issues.
“[WayForth] was in advanced negotiations with a private equity group in which the transaction would have provided significant equity capital as well as led to the debtor combining with a larger, profitable entity,” it said in court filings. “The merger collapsed when the private equity group decided not to move forward with the transaction. As a consequence, the debtor was faced with an imminent cash crisis and very limited options.”
I’ve reached out to WayForth for comment and will update this post when I hear back.
Richmond BizSense was the first to report about WayForth's bankruptcy filing.
WayForth focuses on moving services for seniors. It said on its website that, as part of its restructuring, its offices in eight states and elsewhere in Virginia were to close Aug. 18 and customers should pick up anything they had in storage with the company by Aug. 31.
The company’s bankruptcy filing estimates between 100 and 199 creditors and between $1 million and $10 million in liabilities. Its assets are also within the $1 million-to-$10 million range.
Accounting firm Deloitte is listed in court filings as WayForth’s largest unsecured creditor. It is listed as being owned $205,000, according to the filing.
WayForth, founded in 2016, raised a $32 million capital round just two years ago following a string of acquisitions.
