It is true. They ran out of cash to the extent they couldn't even reorganize under Chapter 11; it's doors shut and a trustee to liquidate and pay the final bills.
I know a bit more than what is in the press releases as a small investor since 2008. I had a bit of money at the time, and wanted to encourage their expansion into my neck of the woods (Seattle). My investment was structured as a 10 year loan at 10% interest, with a perk of free lifetime membership at any shop. Ultimately, they never built a shop close to me; and the only time I set foot in one was a tour of the facility in Chandler, AZ one afternoon (I literally drooled when I saw their waterjet). Guess that's all I'll ever get.
It became apparent about a year and a half ago that the writing was on the wall. I was under heavy pressure to convert my loan into an equity position; but I refused because they just never seemed like they could get their act together. Their first CEO came from Kinko's, and he apparently put them in a big hole by having the shops open 24/7. They also spent too much time trying to become a franchiser (the founder always compared them to 24 Hour Fitness). The next guy tried to turn it around, but it was apparently too far gone.
I didn't lose any money on the deal - I just missed out on a couple of payments that would have been interest. I probably made out about as well as if I'd kept the money in a savings account. I'm sure others weren't as fortunate.
It's too bad. I always wanted them to succeed. I was seriously thinking about relocating to Arizona in retirement so I could have access to the Chandler facility. It was clean, well-equipped, and busy when I saw it. I preferred it to the various makerspaces I've seen; but I suppose they are the only alternative now. I have a decently-equipped home shop, but damn! I wish I could have had a turn at that waterjet.
Dave
