Ashton Kutcher-Backed Startup Tells Employees It Can’t Make Payroll
- Neighborly CEO tells employees it can’t keep paying them
- Move marks ‘another difficult period of reorganization’
This article is for subscribers only.
Neighborly, a startup that once sought to upend the way securities are sold in the $3.8 trillion municipal-bond market, idled its employees after an unsuccessful effort to raise money to stay afloat, according to a memo obtained by Bloomberg News.
Jase Wilson, chief executive officer of the San Francisco-based company, told employees on Sunday that its funding did not close last week. He asked employees to stop working.