RenoRun expects to close a purchase of its assets by no later than May 15.
Montréal-based construction tech startup RenoRun has shut down operations, according to multiple employees terminated by the company.
Multiple LinkedIn posts and now-former employees who spoke with BetaKit indicate that RenoRun shut down its operations on Wednesday, April 26. BetaKit reached out to RenoRun co-founder and CEO Eamonn O’Rourke but did not hear back by press time.
The sale of its assets continues to roll through Québec courts as part of an insolvency process.
While RenoRun shuttered its business after failing to secure financing or hail mary acquisitions, the sale of its assets continues to roll through Québec courts as part of an insolvency process.
Last week, RenoRun was granted an extension until May 26 to present a proposal plan to its creditors about the next steps in the sale of its assets. This is part of RenoRun’s insolvency process for which the startup said it is seeing a high level of interest from potential buyers.
At the time, RenoRun also reportedly sent an email to customers informing them that the company will no longer accept new orders and is cancelling memberships.
According to court filings, 20 parties expressed interest in buying RenoRun’s assets, while 17 parties have signed non-disclosure agreements that allow them to move forward with the bidding process. The filings also state that other parties have had discussions about a potential purchase with RenoRun’s management team. They do not say who these potential buyers are.
RenoRun stated in the court documents that its objective is to submit a transaction for court approval and close such transaction by no later than May 15.
RenoRun was founded in 2016 and created an e-commerce marketplace for the delivery of building materials to construction sites. The company expanded its operations across North America until it hit roadblocks in late 2022.
RenoRun attempted to raise a bridge round multiple times amid a toughening fundraising market. However, neither its Canadian nor its international investors, including the struggling Tiger Global, stepped up.
The startup pursued acquisitions in an attempt to keep its business running, but was ultimately not able to sign any deals and was forced to file for insolvency. Multiple sources familiar with the company’s options prior to insolvency confirmed to BetaKit that RenoRun considered acquiring another startup or letting itself be acquired by a long-time industry partner. Those sources declined to name the potential acquirer, but the most likely candidates are the likes of Home Depot and Home Hardware, which started out as RenoRun competitors and turned into partners for material sourcing as the company expanded to new markets.
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