US-based eco-friendly products startup M.C. Squares that appeared on ABC’s “Shark Tank” in 2020 is now struggling to stay in business. The company has filed for Chapter 11 bankruptcy protection, owing between 20 and 49 creditors approximately $3.34 million.
American eco-friendly products startup mcSquares (M.C. Squares) filed for Chapter 11 bankruptcy. Sticky notes, planners, calendars, and to-do lists are sold by the Thornton-based startup.
Under Chapter 11, mcSquares can restructure and continue to operate.The filing says the corporation will offer a creditor-friendly restructuring plan. There is no bankruptcy scheme in the District of Colorado.
M.C. Squares owes 20–49 creditors $3.34 million, according to bankruptcy filing. According to the report, McSquares has $906,000 assets and $5.7 million net operating losses.
Their eco-friendly sticky notes, desktop whiteboards, and dry-erase tiles make any room interactive.
Serial entrepreneur Anthony Franco established M.C. Squares in 2015. The startup’s website says Franco’s sixth firm is McSquares.
M.C. Squares became famous in 2020 after signing with ABC’s “Shark Tank” investor Kevin O’Leary. Franco claims the deal with O’Leary changed from $300,000 for 25% of the firm to $50,000 for 11% four months after the episode. Franco said this was because mcSquares’ quick growth in 2020 made capital less relevant. The startup wanted to hire 10–25 people.
O’Leary’s company was one of 20 mcSquares creditors with the greatest unsecured claims. A petition listed $33,657.84 in unsecured claims to Boston-based O’Leary Productions. New Jersey-based Integral Micro Cap Opportunity Fund owed $850,000 from a convertible loan, Denver Angels owed $408,700, and the Colorado Small Business Administration owed $362,457.48.
Franco was named twice for a $534,686.63 firm loan and $31,738 “short-term cash flow loan & retainer funding.”
The same document displays $22,744.79 in Adams County personal property taxes.
M.C. Squares has raised over $1 million through crowdfunding and $660,000 from Denver Angels.
Conclusion
US eco-friendly products startup M.C. Squares filed for Chapter 11 bankruptcy to restructure and survive. The statement indicates that mcSquares owes 20–49 creditors $3.34 million, with $906,000 in assets and $5.7 million in net operating losses. The company, started in 2015 by serial entrepreneur Anthony Franco, makes eco-friendly sticky notes, desktop whiteboards, and dry-erase tiles. The statement cites O’Leary Productions as one of 20 mcSquares creditors with the greatest unsecured claims. Over $1 million was raised through crowdsourcing and $660,000 from Denver Angels.
