Bench to be purchased following a sudden shutdown

Bench, the VC-backed accounting startup that abruptly shut down last week, leaving thousands of customers locked out of their accounts, has now been acquired by Employer.com for an undisclosed sum, according to an exclusive report from TechCrunch.

Employer.com, a San Francisco-based HR tech company specializing in payroll and onboarding, confirmed to TechCrunch that it will revive Bench’s platform and guide customers on how to access their data shortly. Employer.com’s Chief Marketing Officer, Matt Charney, stated that customers will have the option to transfer their data or maintain their services under the new ownership. Furthermore, Employer.com confirmed that customers will no longer need to file for a six-month extension with the IRS, as previously advised by Bench, to seek alternative bookkeeping solutions.

Bench, which served over 35,000 small business owners, currently displays a message on its website promising more details soon on how customers can continue their services. The startup’s sudden closure, occurring just as tax season approaches, caused significant disruption, with locked-out customers unable to access their accounts. Emails sent to Bench staff have also been bouncing back, further adding to the confusion.

TechCrunch verified the acquisition with a Bench board member, though neither Bench nor Employer.com would disclose the acquisition price. Employer.com, which is entirely self-funded and not VC-backed, is a relatively new player in the HR space. Its CEO, Jesse Tinsley, acquired the domain name Employer.com in November for approximately $450,000 and has launched several related HR-focused businesses, such as Recruiter.com and BountyJobs.

In a statement regarding the acquisition, Employer.com assured Bench customers that they can continue to work with the same trusted bookkeepers, promising “enhancements and capabilities” powered by Employer.com’s resources.

However, challenges remain, especially as Bench employed over 600 people prior to its closure. Following the shutdown, some former employees shared on LinkedIn that they were seeking new opportunities. Despite this, Bench is reportedly recalling some staff to ensure a smooth transition, as confirmed by Jennifer Bouyoukos, Bench’s Chief People Officer, in a statement to TechCrunch.