Fintech startup Parker files for bankruptcy
TechCrunch • • business
Key Points:
- Parker, a startup providing corporate credit cards and banking services for e-commerce businesses, has filed for Chapter 7 bankruptcy and reportedly shut down, despite its website still being active.
- The company, part of Y Combinator's winter 2019 cohort and backed by over $200 million in funding including a $125 million lending arrangement, aimed to offer better financial products by assessing e-commerce cash flows.
- Parker's credit card partner, Patriot Bank, confirmed the shutdown to customers, prompting competitors to attempt to attract Parker’s former clients.
- The bankruptcy filing reveals Parker has assets and liabilities between $50 million and $100 million, with 100 to 199 creditors involved.
- Failed acquisition talks reportedly contributed to the shutdown, raising concerns about the oversight by Parker’s banking partners and leaving small business customers in a difficult position.
