Pear Therapeutics filed for Chapter 11 bankruptcy protection Friday and said it has eliminated most of its workforce.
The filing, in bankruptcy court in Delaware, comes just three weeks after the digital therapeutics company, said it was exploring strategic alternatives and might need to restructure or fold if it did not find a financial lifeline.
In the bankruptcy petition, the company listed $65.6 million in assets and $51 million in debt. The largest unsecured creditor is Perceptive Advisors, owed $10.4 million.
Boston-based Pear’s board authorized eliminating about 170 employees, or 92% of its full-time staff, according to a Wednesday Securities and Exchange Commission filing. The job cuts, completed Thursday, resulted in a one-time charge of approximately $1.2 million, primarily tied to severance payments, the company said.
The company said it will retain about 15 employees to work through the bankruptcy process and continue marketing efforts. Pear said it will seek buyers interested in specific assets or the entire company.
Founded in 2013, Pear focuses on clinician-prescribed therapies to target opioid use disorder, chronic insomnia and substance use.
The company went public in December 2021 in a $1.6 billion deal with special purpose acquisition company Thimble Point Acquisition Corp. Pear’s shares have dropped from a high of $6.48 per share on May 5, 2022, to 22 cents on Thursday.