Calgary-based warehouse robotics company Attabotics is filing for bankruptcy protection after depleting nearly $200 million in funding and laying off much of its workforce, according to multiple reports on LinkedIn.
Founded in 2015 by CEO Scott Gravelle, Attabotics developed automated fulfillment systems inspired by ant colonies. Its technology replaced traditional aisles with high-density vertical storage structures. Swarms of robots retrieved items from stacked bins and delivered them to workers for packing, promising to transform warehouse operations for major retailers.
In 2022, Attabotics secured USD $71 million in a Series C funding round led by Export Development Canada (EDC), with participation from Ontario Teachers’ Pension Plan Board through Teachers’ Venture Growth (TVG).
Despite this support, the company reportedly burned through several million dollars monthly. A document circulated online by supply chain consultant Brittain Ladd indicated that Attabotics filed a notice of intention to make a proposal under the Canadian Bankruptcy and Insolvency Act on June 30. Richter Inc. was named as trustee. However, as of Wednesday morning, no filing appeared in the Office of the Superintendent of Bankruptcy’s public records, and Richter had yet to list Attabotics among its insolvency clients.
According to LinkedIn, Attabotics employed nearly 300 people at its peak in 2023 and served customers including Canadian Tire, Gordon Food Services, Pan Pacific Pet, and Modern Beauty Supplies. The company also recently signed a supply deal with UK grocer Tesco.
Earlier this year, Attabotics settled litigation with Canadian Tire related to a 2023 warehouse fire, which the startup said had damaged its reputation and hurt sales.
Whether Attabotics will emerge from creditor protection or be forced to wind down operations remains to be seen. The company has not issued a public statement about its plans.
As I state in my LinkedIn post, Attabotics lacked a coherent strategy, and that severely impacted the company. In addition, the cash burn rate of Attabotics demonstrated a complete lack of competent executive leadership.
I strongly encourage Export Development Canada (EDC), the Ontario Teachers Pension Plan Board, and Teachers’ Venture Growth (TVG), to insist that an investigation be conducted to account for the funds invested in Attabotics.