Privately held Canadian fintech company Clearco has announced a new round of staff cuts and replaced its chief executive officer (CEO).
Clearco announced that it will reduce its workforce by 25% just months after a similar workforce reduction at the company. Additionally, Michele Romanow has been replaced as CEO less than a year after assuming the leadership role.
Romanow is being replaced as CEO by Andrew Curtis, an advisor who has worked with the company for the last six months.
Toronto-based Clearco is a financial technology (fintech) company that lends money to people and organizations based on their revenue rather than assets.
The company had launched an international expansion but announced last summer that it was exiting all international markets.
Clearco was valued at as much as $2 billion in a private funding round. The company raised almost $700 million in funding over the past two years, according to data from Crunchbase.
However, multiple media reports state that Clearco is now having trouble servicing its debt, raising the prospects of a bankruptcy filing.
In recent months, Clearco hired U.S. bank Financial Technology Partners to explore its strategic options, including a potential sale.
Clearco is not traded on a stock exchange. The company has never reported a profit.
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