The bankruptcy file of Tero, a young Quebec company that had won over thousands of consumers with its small household appliance capable of transforming kitchen waste into fertilizer, shows debts that could amount to $6.9 million. Of this amount, $2.7 million could be claimed by nearly 3,000 injured consumers, who paid $500 to $1,500 for company products that they never received.
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Tero customers, some of whom had been waiting for their device for almost two years, are not, however, among the secured creditors, indicates the notice to creditors sent by the trustee Lemieux Nolet.
The National Bank is the only secured creditor, for an amount of $1.2 million, but it risks losing $775,000 unsecured. Among the other main creditors at risk of deadweight loss, there is M2S Electronics, for $1 million, the Fonds de solidarité FTQ for $500,000 and the founder of EXFO Germain Lamonde, who had invested $400,000 in the company. , in addition to chairing the Board of Directors until last September. Third shareholder of the company, he learned of the bankruptcy from the media.
angry customers
On Tero’s Facebook page, customers are expressing their anger.
“The saddest part is the hundreds of consumers who have invested almost two weeks’ salary for a device they will never see. Not even a little sympathy for them in Tero’s last speech. Sad… indeed,” wrote one consumer.
photo taken from Tero’s Facebook page
“A purchase paid for almost two years ago, without ever delivery, neither of the Tero, nor of the promised accessories, despite repeated promises. In addition, it seems that it is without refund! What a scam! It’s expensive to want to support local businesses and to trust the honesty of these people! I won’t be caught again! “Writes a customer, who had ordered her device in July 2021 and to whom the company invoked supply difficulties a year after payment.
Tero had launched a crowdfunding campaign on Kickstarter in 2019 to start manufacturing its compact composter and had exceeded one million dollars in 24 hours. The first customers paid between $600 and $800 to support the start-up company, which had committed to providing them with the device.
Production costs higher than expected
On the Tero Facebook page, the Quebec City entrepreneurs announced the end of the adventure yesterday, explaining that several factors led to this decision.
“Our Tero device cost significantly more to manufacture than anticipated due to several factors: supply chain issues have been amplified by the pandemic and price explosion, not to mention the batch of challenges that we encountered during its development”, can we read in the message of Tero, property of Élizabeth Coulombe and Valérie Laliberté.
“We fought heart and soul, but unfortunately this great adventure is over,” they add, thanking those who believed in Tero.
Some consumers who have been waiting for their device for a very long time have indicated that they were able to get reimbursed by their credit card, while others have not.
A possible buyer for Tero could perhaps change the course of history.
The meeting of creditors is scheduled for June 1.
The risk of crowdfunding
Some Internet users also noted that buying a product via a crowdfunding platform represents a risk that must be assumed as a customer.
“For those who are wondering or furious about the money spent, it is clearly indicated when you use a platform such as Kickstarter that it is an investment for the development of a product. It is possible that the project does not see the light of day or is canceled for reasons like those of Tero”, writes one of the commentators.
Another responds that he made his purchase after the crowdfunding campaign, thinking that the company was doing well.