Conversion of the safeguard procedure into judicial liquidation pronounced on 15/10/2024.
This actually suggests that the bankruptcy may have already been confirmed by court and that the firm’s assets are to be liquidated asap to pay off the creditors according to their respective rank of priority/seniority.
The article here above alleges that the company owners may not have been allowed to communicate during the summer anymore. However, in my opinion, any such communication would have only accelerated the company’s demise. They did try to save the business and unfortunately their attempt was unsuccessful
I mean, the same can be said of those running Ponzi schemes before they collapse.
You don’t get points for scrambling after running out of money. The only points awarded are for plans that keep you from running out of money in the first place.
I am pretty sure they do, but with very low priority (compared to outstanding wages, social charges, secured loans, etc.). I don’t expect anything at all for their backers (that - in my opinion - were not properly informed about Aodyo’s problems).
If this protection status began on June 24 2024, that would have been just less than a week after they posted an update on the Loom Kickstarter titled “Almost ready for production” (June 18). It is impossible that they were unaware of this situation for that update, and that feels highly deceptive.
Seems odd. Is it possible the person doing the update wasn’t privy to the financial situation, though?
I’ve worked for companies that went under and we weren’t given any info until basically the doors were shut. Of course we knew things were not good, but us lowly employees didn’t know how dire things were.
No, Adoyo openly stated after the fact that they launched Loom to (hopefully) generate bridge finance to finish the Omega. In a way, that plan made it a Ponzi scheme from that moment on and it fell apart with the Loom not generating the expected revenue.
The 24 June ruling granting the firm the “safeguarding procedure” status is a public act. I find it rather unrealistic that people within Aodyo would not have known about it.
“Should a buyer come forward to the commercial court, they will decide whether to continue or not with the projects. We will do everything possible to fulfill our moral duty to you if a recovery occurs.”
Did y’all not see the bit where they were legally not allowed to disclose their financial status to customers as part of the safeguarding procedure? And yes, this kind of financial secrecy is more common than not in companies.
This is not about disclosing their finances, but about being transparent about the bankruptcy procedure engaged (this information is not restricted, but public).
My principal deception is not about individuals working for Aodyo, but related to the fact that the firm sent a message to backers on 18 June in which they emphasize their confidence in their ability to deliver Loom - just three business days before the public court ruling that accepted Aodyo’s demand to enter the first stage of the bankruptcy procedure.
This ruling was publicly announced in the official French publication (as is mandatory in order to inform third parties), but Aodyo chose not to inform its backers.
A month later, in a message to backers on 23 July, they also did not mention anything about the public bankruptcy procedure they had engaged.
Not that this would have changed anything, but in my view at least, they did not at all play by Kickstarter’s transparency rules.
Impatient investors / venture capitalists with priority, who decide to grab the remainder of the crowdfunding money in the bank while they could, rather than waiting for the whole development investment process to complete ?
Banks with long term loans, deciding without warning, to just call the loan, and grab what money was available, rather than letting the borrower pay off the loan over time ?
The French bankruptcy courts, that oversaw the process of a creditor pulling their money back and forcing a bankruptcy, rather than working to allow a company with a set of selling products and several more on the way, likely to make their way through their troubles, the time to resolve issues ?
The administrators, lawyers and court appointed personnel, who jump to the top of the priority list, who get paid big fees, having little to no interest in protecting the value of investors near the bottom, or the interests of the company or the people who have been working on these projects for years. Worse yet, these hired guns come in, without understanding the business, nor taking the time to learn of that business, and treat the situation like a financial equation - hard assets vs liability, not ever seeing the real complete value of the asset ?
The employees and workers earning their salaries, trying to make a set of challenging projects a success, and now, just being told to go someplace else, but you are not allowed to talk about what just happened because of your non-disclosure ?
Again this is all my speculation. ( Based on years of experience observing the tech startup bankruptcy thrash and what happens after – Many times. )
I think the root cause for money running out in a company is often bad management of the company, for example making overly optimistic assumptions about future profitability, cost estimates, timelimes, business risks and so on. Of course don’t know the details of this case.
I personally stay away from this kind of funding because of the risks involved.
Obviously. I’d say mistakes instead. Can a company make different choices, with different outcomes ? Most definitely.
And well managed companies make mistakes, and well managed companies fail too. ( One need only think of the list of companies that failed in the pandemic as for instance. )
The word used here was …
You’re not saying though that you’ve never seen the things i listed happening to precipitate a bankruptcy, especially in the situation as described in the notices from Aodyo.
End of the day the buyer gets hosed. Sorry to hear it. Consider it an investment you made to never buy something through kickstarter again.
Ignore the apologist(s), you folks have every right to be angry. Who cares about a company’s books - you paid for something and got nothing and your money is gone.
