Delivery and logistics services firm Scoobeez Global filed for chapter 11 bankruptcy April 29, less than a month after announcing expansions into three locations in Texas.
The Glendale-based company was founded in 2014 and then acquired in 2015 by Pasadena-based ABT Holdings for an undisclosed sum. At the time of the investment, Scoobeez Chief Executive Benjamin Art said in a statement, “ABT has brought in deep business insights and corporate management expertise, which has put us in the path of growth and profitability. We are not only excited about this strategic investment, but also look forward to expand our operational footprint.”
In a recent bankruptcy filing with the state, Scoobeez reported up to $50 million in liabilities and fewer than 50 creditors. The company could not immediately be reached for comment on the filing.
Some Scoobeez drivers worked for Amazon.com Inc. to deliver packages for its “Amazon Prime Now” service, according to an October 2015 lawsuit filed against Amazon and Scoobeez alleging workers for both services were being denied benefits and wages because they were misclassified as independent contractors. The class action lawsuit asked Scoobeez to reclassify its delivery drivers as employees, transitioning them from 1099 to W-2 employment.
On April 3, Scoobeez announced plans to expand into the greater Dallas area, marking its third nationwide office. The company lists 11 planned expansions “coming soon” on its website.
Tech reporter Samson Amore can be reached at firstname.lastname@example.org or (323) 556-8335. Follow him on Twitter @samsonamore.
CORRECTION: An earlier version of this story misstated the name of Scoobeez Global Inc.
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