End of the line for FemTec Health
The women's health startup FemTec Health is out of money and winding down operations, according to public legal documents and social media posts seen by Axios.
Why it matters: It's a culmination of troubles plaguing FemTec, once envisioned as the launchpad for a one-stop women's health shop.
Details: A document emailed to several shareholders and dated May 12 says FemTec "has decided to discontinue its business" and is transferring all its property and assets to an unaffiliated assignee named FemTec Health LLC.
- Signed by FemTec CEO Kimon Angelides, the document also says FemTec is "indebted to various creditors and is unable to pay its debts in full."
Zoom in: The process FemTec is using to liquidate, known as an "assignment for the benefit of creditors," is simpler than a traditional Chapter 7 bankruptcy filing.
- It's overseen by state law and involves a debtor assigning its assets to an assignee to liquidate the assets and pay off creditors, says Jason Binford, a lawyer at Texas bankruptcy and mediation firm Ross, Smith & Binford.
Catch up quick: Axios' previous reporting covered allegations that Angelides misrepresented the company's financial and operational status.
- In a letter viewed by Axios earlier this month, the former CEO of FemTec subsidiary Birchbox demanded $2 million from FemTec and Angelides.
- That follows actions taken in January by a group of former leaders at FemTec subsidiary Ava who filed with Switzerland's debt enforcement office to recoup wages they allege were not paid.
A version of this story was published first in Axios Pro Health Tech deals. Start a free trial at AxiosPro.com.