As we confirmed earlier this morning, Akimbo has laid off most of its staff and closed operations. We’ve now learned the company is maintaining a skeleton crew to keep the services up and running as it looks to find a buyer.
I spoke this morning with Akimbo CFO Peter Chantel, who provided more details on the shutdown. “The board has decided that it would be better for the company to look for an M&A partner for Akimbo and Akimbo services and solutions,” he told me.
The company had raised $4 million earlier this year from existing investors, but Chantel said the company was looking to raise $8 to 10 million to become cash positive with its new white-label strategy. Unforuntaely, “there wasn’t enough runway to execute the plan,” he said.
CEO Thomas Frank resigned after what we heard were big problems that erupted between him and the board. Chantel is the only executive left at the company, though he declined to specify how many other staff remain.
The decision was made this week, and 14 people were laid off yesterday. According to Chantel, Akimbo’s video services for Homezone and CenturyTel are still operating. We have calls out to both companies to confirm.
We’ve also contacted MavTV, which was a launch (and the only) customer for Akimbo’s white-label service. Chantel said Akimbo’s white-label service was still being used by MavTV — we have a call in to them as well to confirm.
Chantel said up until the layoffs management was holding weekly meetings with employees to keep them abreast of what was happening with the company. “This wasn’t a shocking surprise to anyone,” Chantel said. “If anyone says otherwise, that’s not true.”