Editor’s note: This story has been updated with additional information from a filing with the Securities and Exchange Commission.
Pear Therapeutics, maker of prescription digital therapeutics, announced today that it has filed for Chapter 11 bankruptcy and is seeking a sale of its business or assets.
The company will continue its scaled-down operations during Chapter 11 as it seeks a sale, and Pear will use its available cash to fund its operations and costs post-petition.
The Boston-based company’s CEO Corey McCann referenced the filing on LinkedIn, stating, “Today is a difficult day for Pear Therapeutics. We announced that Pear voluntarily filed for Chapter 11 and will seek to sell assets through a sales process. We also announced a reduction in force, including me. This is certainly not the outcome I envisioned when I founded Pear in 2013.”
In a filing with the Securities and Exchange Commission, Pear said it would lay off approximately 170 employees, nearly its entire workforce. The company would maintain a transition team of about 15 employees to continue operations in connection with Chapter 11.