Quirky, Inc., the parent company of smart home hub maker Wink, Inc., has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. After a rough summer, severe layoffs and an uncomfortable admission that the company had run out of money, Quirky has caved to financial pressures.  Quirky has examined various options to keep things afloat and has concluded that Chapter 11 is the company’s best option as it permits the restructuring of the company.

Famed for high profile investors including General Electric and Andreessen Horowitz, news of Quirky’s shutdown has shaken the Industrial Internet sector, leaving hundreds of inventors with one less marketplace for their promising and futuristic gadgets. Whether it was poor management or an unrealistic vision of a democratic marketplace, the end result is Quirky’s untimely death.

Selling assets, namely Wink

Quirky will be selling off all its assets and is working with companies to establish a stalking horse bidder for its assets which sets the minimum amount that Quirky assets will be acquired. If bids are received, the Company will conduct an auction and will seek court approval to have the sale close within approximately 60 days.

Though Quirky product evaluation and development projects were temporarily suspended, the company hopes that the when it gets acquired all these operations will resume and reestablish a meaningful and productive relationship with the community members.

As for Wink, Quirky has entered into an agreement with Flextronics International USA Inc. for the sale of certain assets at a purchase price of $15 million. This is a stalking horse bid which is subject to higher or otherwise better offers. If bids are submitted, an auction will be conducted and the Company will seek court approval to close the sale in 60 days.

This bankruptcy filing does not affect Wink’s operations as its engineers will continue to enhance the Wink platform to provide new, meaningful ways for customers to interact with their smart home. The Wink HUB and Wink Relay will continue to be available at The Home Depot and Amazon, and its customer support team will continue to provide the same quality assistance.

The Company has engaged Cooley LLP and Klestadt Winters Jureller Southard & Stevens, LLP as counsel, FTI Consulting as its restructuring advisors, Centerview Partners LLC as investment banker with respect to the Wink assets, and Hilco Streambank as investment banker with respect to the Quirky assets.

Quirky was established back in 2009 as a means for developers and inventors to interacts and collaborate on projects as well provide a way for consumers to purchase inventions. In 2013, General Electric Co. invested $30 million into the company to facilitate the development and launch of 30 products for the connected home in the span of five years. In 2014, Quirky has expanded its home automation offerings by spinning off Wink as a standalone company. The launch of the Wink Hub and relaunch of the Wink app marked the spin off. In just a few months, Wink released Relay, its second major product that delivers home control in a beautiful little package.

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