Canadian Tech Firm Files Insolvency Notice, Terminates Workforce
One of Canada’s most promising robotics startups, Attabotics, has officially shut down operations after raising over $200 million CAD since its founding in 2015. The Calgary-based startup, once hailed as the future of supply chain automation, filed a Notice of Intention (NOI) under the Bankruptcy and Insolvency Act, alerting creditors to severe financial trouble.
From Tech Star to Shutdown
Attabotics once claimed to reinvent warehouse logistics with its 3D robotics-powered fulfillment systems. It aimed to bring robot-run storage solutions closer to urban areas. The startup boasted high-profile clients like Nordstrom and operated fulfillment centers across North America. But despite this ambitious vision, mounting cash flow issues and investor hesitation eventually brought operations to a halt.
Losses Pile Up, Funding Dries Out
According to filings posted by trustee firm Richter, Attabotics recorded net losses for three consecutive years, peaking with a $50 million CAD deficit in 2024. Despite securing approximately $30 million in new business by early 2025, the company could not sustain operations without fresh capital. A much-needed Series D round stalled after investors raised red flags about cash flow instability.
Crushed by Debt, Led by Promises
As of the NOI filing, Attabotics listed assets worth nearly $32 million CAD, against liabilities of $73.5 million. Export Development Canada (EDC), its largest creditor, is owed $46 million, while the Business Development Bank of Canada (BDC) is owed $2.8 million. The closure has left roughly 200 employees jobless, with only 12 staff members retained temporarily to support the insolvency process.
Office Emptied, Operations Halted
The Calgary Herald reported that employees were seen leaving the company’s headquarters with personal belongings. An official notice on the office door confirmed that unless otherwise informed, all employees were terminated as of June 30, 2025, and barred from returning to the premises.
CEO Scott Gravelle updated his LinkedIn profile to describe himself as a “recovering visionary,” signaling a full stop to the company’s leadership and vision.
Government and Legal Entanglements
Attabotics had previously secured funding from the federal Strategic Innovation Fund and support from Ontario Teachers’ Pension Plan Board. Its final raise, a $95-million Series C-1 in 2022, was led by EDC.
The startup was also embroiled in legal battles, including a 2021 patent dispute with Boston-based Urbx and a high-profile lawsuit against Canadian Tire over a warehouse fire. That dispute, related to a federally backed Scale AI project, was only resolved in early 2024.
Stark Lesson in Ambition and Burnout
Despite promising tech and market traction, Attabotics couldn’t align its innovation with sustainable cash flow. Investors’ patience ran thin, and macroeconomic headwinds only deepened the crisis. The fall of Attabotics serves as a stark reminder: even the most futuristic startups can collapse without solid financial fundamentals.
As Canada’s tech landscape recalibrates, stay tuned to Maple News Wire for the latest updates on innovation, insolvency, and industry insights.
