US-based consumer gadgets manufacturer Quirky, backed by conglomerate GE, has filed for chapter 11 bankruptcy, TechCrunch reported yesterday.
Supply chain services provider Flextronics has made a $15m bid for Wink, the company’s home automation platform.
Founded in 2009, Quirky enabled users to pitch ideas for inventions and collaborate with the company’s product design staff.
Quirky had secured more than $185m in funding from investors including GE and Norwest Venture Partners, the venture capital firm managing funds on behalf of financial services firm Wells Fargo, as well as Kleiner Perkins Caufield & Byers, RRE Ventures and Andreessen Horowitz.
The company has accrued between $50m and $100m in debt, while its assets are worth between $10m and $50m. Quirky had first tried to sell Wink in March 2014 for $30m, decreasing the asking price progressively since then.
Quirky will conduct an auction for its remaining assets within two months.
Cooley and Klestadt Winters Jureller Southard & Stevens are acting as counsel while FTI Consulting is serving as restructuring advisor. Centerview Partners is acting as investment bank for Wink, while Hilco Streambank is acting as investment bank for the remaining Quirky assets.