Pear Therapeutics filed for Chapter 11 bankruptcy protection on Friday and said it has eliminated most of its workforce.
The filing, in bankruptcy court in Delaware, comes just three weeks after the digital therapy company said it was exploring strategic alternatives and may need to restructure or fold. if no financial rescue is found.
In its bankruptcy filing, the company listed $65.6 million in assets and $51 million in liabilities. The largest unsecured creditor is Perceptive Advisors, which owes $10.4 million.
Boston-based Pear’s board of directors authorized the layoffs of about 170 employees, or 92% of the company’s full-time employees, according to a Securities and Exchange Commission filing Wednesday. The job cuts, completed on Thursday, resulted in a one-time fee of about $1.2 million, mostly related to severance payments, the company said.
The company said it will keep about 15 employees to work through the bankruptcy process and continue its marketing efforts. Pear said it will look for buyers interested in specific properties or the company as a whole.
Founded in 2013, Pear focuses on clinician-prescribed therapies for the treatment of opiate use disorders, chronic insomnia, and substance use.
The company went public in December 2021 in a $1.6 billion deal with special purpose acquirer Thimble Point Acquisition Corp. Shares of Pear fell from a high of $6.48 a share on May 5, 2022 to 22 cents on Thursday.
