Teespring, the online custom T-shirt marketplace startup, has recapitalized its stock in what is being described as a financial “cram down.” The Wall Street Journal reports that Teespring is currently raising new financing at a company valuation of about $11 million, compared to previous valuations as high as $650 million. The financial restructuring comes on the heels of steep workforce layoffs first reported in May of 2017 and the closure of its Providence, Rhode Island headquarters last year.
Teespring, the online custom T-shirt marketplace startup, has recapitalized its stock in what is being described as a financial “cram down.” The Wall Street Journal reports that Teespring is currently raising new financing at a company valuation of about $11 million, compared to previous valuations as high as $650 million. The financial restructuring comes on the heels of steep workforce layoffs first reported in May of 2017 and the closure of its Providence, Rhode Island headquarters last year. In The Wall Street Journal article, Teespring VP Chris Lamontagne was quoted as saying that “Restructuring the company was a difficult decision, however making these changes enables us to run a healthy and profitable business moving forward.” He also cited changes to Facebook advertising rules as among the challenges the company and its sellers have faced.