From €83 million funding round to bankruptcy: a nightmare year for Jeff

- May 30, 2023

Profitability” was the first thing on the CEO of Jeff Eloi Gomez’s agenda for this year.

However, yesterday it was revealed that the Valencian startup has filed for voluntary bankruptcy after more than nine months of unpaid wages to its employees, resulting in a significant reduction in its workforce.

Now, the Mercantile Court No. 2 of Valencia has appointed an administrator who will be responsible for managing this process, as the company announced one of the most significant funding rounds of the year in Spain, but failed to finalize it with two international funds.

Furthermore, they were unable to secure any form of financing, exacerbating the ongoing problems and turning them into a nightmare.

Over the past two years, the startup has already undergone two workforce reduction plans (ERES), resulting in nearly 200 layoffs and over nine months of unpaid salaries.

According to the Mercantile Registry, the franchising platform for laundromats and other businesses initiated voluntary bankruptcy proceedings on May 19, which were subsequently approved by the court and officially registered on the 26th of the previous month. 

The appointed insolvency administrator is the specialized law firm PKF Attest. The company now enters a phase in which potential liquidation or debt restructuring to address its accumulated liabilities is being considered.

The exact debt amount has not yet been determined, but it is significant. From 2020 to October 2022, the company accumulated losses of around 65 million euros.

Employees and other legal claims

Employees who are owed months of wages are still waiting. Their respective lawsuits have already been filed and are currently being analyzed by the 17th Social Court of Valencia.

In addition, according to the newspaper La Información, the startup is facing other legal issues. Over the past three years, it has been subject to lawsuits in numerous markets where it operates, including Colombia, Mexico, Brazil, and Spain.

Most of these cases are being examined by judges in different courts. The allegations focus on an alleged scam, claiming that promised conditions, such as profitability within a specific month or order generation through their app, were not met.