The potential rebirth of TechShop Chandler hit another roadblock after a deal to acquire the makerspace’s defunct parent company fell apart.
TechShop 2.0 LLC had agreed to a memorandum of understanding to acquire all assets from TechShop Inc. – the company behind all 10 TechShop locations in the U.S. that was on the verge of filing Chapter 7 bankruptcy weeks ago – with the intention of reopening as many locations as possible.
However, TechShop Inc. has now canceled the memorandum of understanding, said Doug Busch, board director, in Facebook posts to several groups dedicated to TechShop members.
TechShop 2.0 Managing Partner Dan Rasure confirmed that it was not his decision to end the deal and expressed dismay at the current situation.
Before receiving notice of the cancellation, TechShop 2.0 had finished up debt negotiations on Dec. 8 and planned to finalize the deal before the New Year, Rasure said.
In a Facebook post of his own to the TechShop Thereafter Facebook group, Rasure wrote that during negotiations his group had provided funds to pay for TechShop Inc.’s “lawyer, health insurance for their employees, some staff pay, and money for their email services.”
Those payments were a part of a $200,000 commitment made by TechShop 2.0 in the memorandum of understanding to provide “wind-down expenses” to TechShop Inc., Busch wrote.
In his post, Busch outlined the reasons TechShop Inc. ended the agreement.
“We were advised by our attorneys that we have an obligation to have ‘reasonable assurance’ that anyone we sell assets to has the capability to execute the commitments made,” Busch wrote. “This includes seeing evidence that the buyer has sufficient capital to get started operating the business, that they have a management team that can start the operation, and that they have a company structure (‘legal entities’) established.”
Busch added that he and the board had not received all of the requested information. Rasure did provide evidence of access to capital “although in the opinion of the board it is insufficient to get the business restarted,” Busch said.
Despite the setback, TechShop 2.0 has not given up in its attempt to acquire TechShop Inc. assets and reopen TechShop locations, Rasure said.
Busch noted that other parties have contacted TechShop Inc. about reopening one or multiple TechShop locations, though he did not specify which ones. He also wrote that the company will continue to communicate with Rasure and that filing Chapter 7 bankruptcy is still an option.
– Reach Wayne Schutsky at 480-898-6533 or email@example.com.