Plastc, a company that launched in 2014 with the promise of replacing all your payment methods with a single "tech-based e-ink" card, announced on their site today that they will be filing for bankruptcy and closing their doors.
In the announcement, the company stated that its inability to close its latest funding round of $3.5 million, along with another failed last minute attempt at raising $6.5 million as the reason for their closure.
"The round was a signature away from closing and we were extremely caught off guard when they notified us yesterday they were backing out. Our existing investors kept us alive and functioning as long as they could during this fundraising process, but in the end, we needed new outside capital to get into production."
According to Crunchbase, it appears that the company had previously raised a total of $7.7 million in a combination of convertible debt and venture funding. Apparently this, along with the $9 million in pre-order revenue the company claims to have made still wasn't enough to move the product from concept to production.
Since pre-orders had begun in late 2013, the promise of delivery had been delayed repeatedly.
Four months ago, in a Plastc focused subreddit, one Redditor laid out the delivery delay timeline:
As you may expect, pre-order customers were noticeably upset over this announcement, especially as it made no mention if any money would be refunded to customers.
Customers have taken to both Reddit and Twitter to voice their frustration and look for answers.
#Plastc robbed customers. @PlastcInc, Facebook, Instagram deleted. Phone disconnected. Email unmonitored. Please contact me if you are owed!-- David Adams (@adamsjdavid) April 20, 2017
With all employees having been let go and the company's social accounts taken down, it doesn't appear there will be any immediate reprieve for angry customers.
Many questions still remain unanswered, including whether or not pre-orders are a form of crowdfunding? And, if so, is the company legally required to refund pre-order purchases for a product that never shipped?
Leave your thoughts in the comments below.