Earth Class Mail, a heavily-funded and highly-touted startup that digitizes postal mail for viewing on the go, has filed for Chapter 11 bankruptcy. The 11-year-old company listed assets of $1.2 million, and liabilities of $13.7 million, including creditors holding $8.5 million in secured claims.
Ignition Partners, the Bellevue venture capital firm, is listed as the largest creditor with a $3.9 million claim.
The company was started in Oregon by entrepreneur Ron Wiener, but moved to Bellevue after raising venture capital funding from Ignition Partners. It returned to Beaverton, Oregon in 2011 after falling on tough times. The company — which at one time employed 115 people — raised $21 million in funding.
So far this year, the company has posted revenue of $496,150 and net loss of 173,357. Last year, the company posted revenue of $5.3 million and a net loss of $1.8 million. That was up slightly from revenue of $5 million and a net loss of $1.5 million in 2013.
The Oregonian first reported on the news, citing a customer service manager who said that Earth Class Mail would continue operating through the bankruptcy and was in the process of being sold.
Here’s the full filing: