A Payments Company Now Files An Unexpected Bankruptcy

April 25, 2024

A payments company now files an unexpected bankruptcy after forging a deal with a buyer, the brand announced on Friday.

TabaPay has put forward a purchase price of $9.7 million to acquire the assets of Synapse, according to the agreement.

The deal is pending bankruptcy court approval, Lindsay Davis, TabaPay’s head of marketing and strategy, told Banking Dive.

Synapse’s brokerage, lending and card issuing units will enhance the existing services that TabaPay currently offers its clients, she added.

TabaPay processes over a million transactions daily on behalf of over 2,500 clients in the U.S. and Canada, according to the company.

“Our ability [is] to come in and acquire the assets as well as make some of the creditors whole in this transaction, should it be approved by the bankruptcy court, all of which is, of course, pending for the next 30 days,” Davis said.

“[Synapse] have built sound technology businesses, and we’d like to be able to acquire those to be able to add to our arsenal of payments today.”

Synapse, an embedded finance platform, applied for Chapter 11 bankruptcy on Monday, listing around 50-99 creditors, estimated assets at roughly $10,000,001 – $50 million, and estimated liabilities at around $10,000,001 – $50 million.

Synapse’s creditors include Amazon Web Services, Evolve Bank & Trust, Financial Technology Association, First Horizon Bank, Fiserv, Lineage Bank, Mastercard, Mercury, Trulioo, Yotta and TabaPay.

“We signed a deal with TabaPay and then filed for chap 11 as that was the buyer preference to be able to do this deal free and clear. We would not have done chap 11 otherwise,” Synapse CEO Sankaet Pathak told Banking Dive via LinkedIn messages.

TabaPay was in talks with Synapse for a potential deal for around a year before extending the offer last week, Rodney Robinson, co-founder and CEO of TabaPay, told Fintech Business Weekly.

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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing

Other Economy News Today

100 mall retail stores now announce painful closures, further fueling the extinction of brick-and-mortal businesses.

Clothing company Express has announced which states will have closures as the store files for bankruptcy.

The bankruptcy filing was officially announced on Monday.

Express has confirmed that 95 of its 553 stores will shut down as well as all 10 UpWest locations, according to the bankruptcy documents.

Customers can expect store closures in the following states:

California – 16
New York – 11
New Jersey – 7
Texas, Florida – 5
Connecticut, Georgia, Illinois – 4
Colorado, Iowa, Maryland, Massachusetts – 3
Indiana, Michigan, North Carolina, Ohio, Pennsylvania, Virginia, Washington, Wisconsin – 2
Arizona, District of Columbia, Hawaii, Louisiana, Minnesota, Missouri, Nebraska, New Hampshire, Nevada, Rhode Island, Tennesee – 1

Stores affected by the mass closures have started sales while opening hours stay the same, reports The-Sun.

Customers can get 40% off everything across men’s and women’s apparel if they shop online.

Closing UpWest locations can be found in Illinois, New York, Minnesota, California, Massachusetts, Virginia, Colorado, Washington, and the District of Columbia.

The company also owns Bonobos, another clothing store, but has not announced any plans to close locations.

Though closures are impending, the company plans to “conduct business as usual,” according to Monday’s press release.

“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” said Stewart Glendinning, Chief Executive Officer, according to the press release.

“We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives.

WHP Global has been a strong partner to the Company since 2023, and the proposed transaction will provide us additional financial resources, better position the business for profitable growth and maximize value for our stakeholders.”

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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy

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