Digital pharmacy startup Medly will close at the end of February, two employees confirmed.
A U.S. Bankruptcy Court judge in Delaware on Monday approved the sale of Medly’s pharmaceutical assets, including patient data, drug records and prescription stock to Walgreens for $19.35 million USD. The sale does not include its retail assets, such as over-the-counter drugs sold through its app and in physical locations.
Medly filed for Chapter 11 bankruptcy protection in December 2022, listing $11.4 million in assets and $105.6 million in liabilities.
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Business Insider on Tuesday reported Medly emailed employees on Tuesday said it would be shutting down and closing the remaining 22 stores that will close by the end of the month. Two employees who contacted the company on Thursday said the company would close at the end of February.
Medly laid off 1,110 workers, more than half of its workforce, in August. It cut another 173 jobs in December when it filed for bankruptcy protection. In September, former employees filed a class-action status lawsuit alleging Medly failed to give proper written notice of dismissal, violating the Employee Adjustment and Retraining Act. labor. The lawsuit was stayed due to Medly’s bankruptcy proceedings.
The bankruptcy is a setback for Medly, which received $100 million in July 2020 from venture firms Greycroft and Volition Capital to grow its digital, same-day delivery business. mine. The company purchased health and wellness pharmaceutical company Pharmaca in June 2021. Its CEO and co-founder, Dr. Marg Patel, left the company in August.
Medly’s downfall comes as digital health companies are struggling to adapt to broader economic challenges. Dozens of startups have laid off employees since June 2022.
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