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TechShop Announces Chapter 7 Bankruptcy; Closes All Locations

Posted by BeauHD on from the closed-for-business dept.

ewhac writes: To the shock and dismay of many, TechShop today announced the immediate closure of all of its U.S. locations and is entering Chapter 7 bankruptcy proceedings. Their homepage has been replaced with a PDF relating TechShop's history, and detailing the circumstances leading to shutting down the company. First launched ten years ago, TechShop was one of the first "shared maker spaces," a members-only machine and work shop where tinkerers, makers, inventors, and innovators were able to prototype their ideas, launch products, or even just fix their own stuff. Its closing will be a huge loss to the tech and maker communities.

66 comments

  1. The Great Recession by Anonymous Coward · · Score: 0

    Notice that TechShop was founded in 2006, right before 2007-2008 Financial crisis that led to The Great Recession. TechShop was founded at the height of a financial boom, when people had a lot of free time and disposable income. But the United States has not really recovered from The Great Recession, and my guess is that TechShop couldn't recover, either.

    1. Re:The Great Recession by Anonymous Coward · · Score: 0

      Yes, of course. That's the explanation.

      It couldn't possibly be that it was a stupid, pointless, unworkable idea.

    2. Re:The Great Recession by ShanghaiBill · · Score: 3, Insightful

      It couldn't possibly be that it was a stupid, pointless, unworkable idea.

      It may have been financially unworkable, but it was neither stupid nor pointless. I was a member for years, and used it for plenty of prototyping projects. They had CNC machine tools, laser cutters, welding equipment, a full woodworking ship, 3D printers, and even sewing machines (for "welding with cloth").

      They always seemed pretty busy, so I am not sure why they failed. I am sorry to see them go. This could have a detrimental effect on the local economies, since a lot of members were working on startup ideas.

      The only drawback for me was the age limit. Much of the equipment had a minimum age of 18, so my kids couldn't come with me to work on their own projects.

    3. Re:The Great Recession by Anonymous Coward · · Score: 0

      Oh if you were a member then it obviously wasn't pointless!

    4. Re:The Great Recession by Anonymous Coward · · Score: 0

      If he was a member he has a much better take on whether it was pointless or not than random ACs on /.

      Stupid much?

  2. 2nd post by Anonymous Coward · · Score: 0

    Trump's fault. That is all.

  3. To many classes by Anonymous Coward · · Score: 4, Informative

    It was a great idea but they made you take a class to touch just about every tool so for makers like me with a decade or more of experience it was never really an option. It would have taken me months and hundreds of dollars just to get certified on all the tools I already use and own.

    1. Re:To many classes by Mr+D+from+63 · · Score: 1

      I'm not familiar with the operation, it sounds like a great concept. I wonder if they tried to much to have 'everything' and rather could have maybe narrowed down to the most used/popular equipment. Or maybe get into service contracts with businesses that had similar facility needs at times.

      I can see how it would be hard to keep going, either way.

    2. Re:To many classes by serviscope_minor · · Score: 5, Insightful

      It was a great idea but they made you take a class to touch just about every tool so for makers like me with a decade or more of experience it was never really an option. It would have taken me months and hundreds of dollars just to get certified on all the tools I already use and own.

      You say that but... my hackspace is one where any yahoo can have a go at almost anything (with very few exceptions). End result is that most things are broken most of the time and really nice expensive kit gets trashed.

      I know it kind of sucked to get recertified, but trust me it sucks harder when you set aside time t owork, get over there and find all the tools fucked up.

      --
      SJW n. One who posts facts.
    3. Re:To many classes by Khyber · · Score: 2

      Please. We have people that would come into the rock shop and say "Yea, I know how to use this" only to have the motor bound up and burning in five minutes.

      This is why warehouses won't hire you as a forklift driver until A. you've gone through the 'certification process' outside of the company and received a certificate and then B. passing their own in-house forklift test (which is the one actually mandated by OSHA and is the only one that matters, the 'certification shops' are just BS money makers.)

      Did the shop forbid you from bringing your own tools? If not, why didn't you just bring your own?

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    4. Re:To many classes by rickb928 · · Score: 3, Interesting

      The hackerspace I go to does put you through certification classes for the obviously delicate stuff (laser cutter, welders, lathe, mill, 3d printers) but you can use almost anything else, and no one seems interested in your certification status for woodworking equipment.

      Of course, it's not as shiny at TechShop, and we never have enough room nor electrical service to do everything at once, but it's friendly, lots of people involved with decades of experience, and affordable - free if you've got no $, but you can contribute.

      I've been to the Chandler TechShop a few times for events, it's not close enough for a membership, and it was busy, but it seemed that classes were a revenue source. Unfortunate to see it go, but our space will be looking to pick up some of their tools cheap, if the trustees liquidate.

      --
      deleting the extra space after periods so i can stay relevant, yeah.
    5. Re:To many classes by barc0001 · · Score: 2

      The problem is for every person like you, there's a hundred others that claim to have the experience and knowledge and then if taken at their word, they end up wrecking a multi-thousand dollar CNC machine because they're a lying sack of crap.

    6. Re:To many classes by tlhIngan · · Score: 1

      It was a great idea but they made you take a class to touch just about every tool so for makers like me with a decade or more of experience it was never really an option. It would have taken me months and hundreds of dollars just to get certified on all the tools I already use and own.

      If you already have the tools, then why bother? Just use your own.

      Take classes on the ones you want to use, the ones you don't own.

      And then take classes on the stuff you do own, because perhaps there are differences between yours and theirs, and maybe there are new "best practices" you are not aware of. Leaning is not a bad thing, and keeping current on complex equipment isn't something to be ashamed of.

      Hell, you might've learned something new and a trick that makes life easier. Or something you learned was an old wives tale.

      Otherwise you end up sounding like those grumpy old people at work who refuse to learn and think they know everything. You know, the people we always stereotype when talking about ageism.

      And here's a trick - if you are the hotshot you are, then it will be obvious on the first lesson. Help other people out in the class - the instructor will appreciate it as it means they only have to deal with half the class, while you're helping the other half learn the equipment. Getting on the instructor's good side can lead to great benefits including, well, not having to take anymore classes (under the assumption you will however ask for help).

      There is nothing wrong with this. Lots of places ask for competency before letting you go on the equipment. Hell, think of a 50-year old career airline pilot who started in the military and few the fastest jet fighters. If he walks into an airport and wants to rent a plane, the company will request he get "checked out" (i.e., hit the books and pass a company-administered flight test) before he's let loose. Here he is, someone with decades of experience and tens of thousands of flight hours, entrusted with people's lives and hundreds of millions of dollars of equipment, having to go back to school even if all he wanted to do was rent a dinky Cessna 152 costing $20,000.

    7. Re:To many classes by Anonymous Coward · · Score: 1

      I think it's important to make sure people know how to use a tool before using it but there is a difference between that and you must take x class at y time for z money in order to use a given tool. Many hackerspaces have tool stewarts and you have to get their sign off to use something but unlike tech shop that doesn't always involve money. For example with techshop I asked if I could skip the welding class. They said no. I offered to show them welds I had done, video of me welding, i offered to weld in front of them or give them a ride on a golf cart sized vehicle I welded from 500' of pipe. Still nope. Take the 4 hour class on saturday for $300 or don't use the exact same model welder I have in my garage. That's just totally unreasonable. It was clear from the get go they were less about being a maker space and more about making money off classes and other fees.

    8. Re:To many classes by barc0001 · · Score: 3, Informative

      > no one seems interested in your certification status for woodworking equipment.

      Most woodworking equipment is robust enough that average misuse won't damage it, and gross misuse is usually harder on the meatbag attempting it than the machine. Example, in the contest of idiot vs lathe, always bet on the lathe. And have a phone handy for the 911 call.

    9. Re:To many classes by barc0001 · · Score: 2

      When he's referring to tools, he means the ones you go to the space to use because you don't have room/money/both to have one yourself, like a cnc or laser cutter or lathe, etc.

    10. Re:To many classes by Anonymous Coward · · Score: 0

      Because carting my own welder into the shop to do a few tack welds is stupid. They had a few tools I did not own and was happy to take classes on but 90% of the stuff I already owned and honestly the $100/month would have been worth it for the few extra tools I don't own (big lathe, cnc, etc) but there was just no way to get to use all that without to much bullshit.

    11. Re:To many classes by Khyber · · Score: 1

      "Because carting my own welder into the shop to do a few tack welds is stupid."

      I'd think you're the stupid one for not simply using a couple car batteries, set of jumper cables, and a couple of welding rods in a backpack and doing electro-negative welding since you're only tack-welding something. Then you get to teach the skill to others at the same time, and demonstrate that you probably don't need all those classes.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    12. Re:To many classes by ShanghaiBill · · Score: 2

      they made you take a class to touch just about every tool

      The classes were quick and hands-on, often just 20-30 minutes, with plenty of practical tips in addition to safety. I never felt they were a problem, and I learned something in every class, even when I had previously assumed I was an "expert"

    13. Re:To many classes by ShanghaiBill · · Score: 3, Insightful

      gross misuse is usually harder on the meatbag attempting it than the machine.

      That might have been the problem. Liability insurance may have killed them.

    14. Re:To many classes by TheGratefulNet · · Score: 2

      I was a member for a few years.

      I didn't mind the classes that much. I saw many kids use laser cutters and fuck them up. their parents just let them run wild there and that was a really bad idea. some kid just stared at one of the cutters while it caught fire (!) and he just STOOD THERE, gaping. I had to open the cover and blow out the flames. stupid idyut!

      so, yes, you HAVE to take 'safety' classes on $30k epilogue laser cutters and such.

      I'm just so bummed out that I now have no other place to go to do my laser cutting, and I counted on that place, too.

      zero notice to customers. thanks, guys. really appreciate it. even 1 week notice would have let us finish our projects.

      fuckers! ;(

      --

      --
      "It is now safe to switch off your computer."
    15. Re:To many classes by I'm+New+Around+Here · · Score: 1

      Sound like the bulk of the maker community is full of bullshit artists who don't actually know their ass from a hole in the ground.

      --
      If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
    16. Re:To many classes by barc0001 · · Score: 2

      Sadly that's what happens when a lot of "makers" think a youtube video is a substitute for training/experience/both.

    17. Re:To many classes by war4peace · · Score: 1

      The local hackerspace has trained personnel who would happily help you and guide you in using and producing stuff from those special machines such as CNC and lathe. They don't force you to take classes. If you need something laser-etched, you just holler and someone who is trained into using that thing would come and help you with getting it done.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    18. Re:To many classes by dex22 · · Score: 3, Informative

      Former member here. They had the table saws that fired an aluminum block into the blade if you touched the blade - to protect you. That would require the charge cartridge and block, and the blade, being replaced. Over $120 a pop. Nice for safety, except it would fire off for things like damp wood.

      What killed them was the required classes to use anything. You'd join ($100) then the random selection of stuff you'd want to use would cost $300-400 all in to get certified for. If the certification classes were a nominal fee, I would a) still be a member and b) have used a lot more gear.

      They were also crap at supporting electronics.

    19. Re:To many classes by I'm+New+Around+Here · · Score: 1

      Thanks for the reply. I just got tired of seeing the same general message in so many posts above. Have a nice lathe.

      --
      If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
    20. Re:To many classes by Shotgun · · Score: 1

      I was an instructor for welding for a short time. This would be my analysis. Trying to be everything to everybody is just to big of a job. And at that point, where do you advertise? Who do you target?

      Even visiting later, I found myself confused by all the options available.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    21. Re:To many classes by Anonymous Coward · · Score: 0

      Sure, because I have an extra $100/week to spend retaking "Intro to Welding" and the like. What's not to like?

    22. Re:To many classes by Anonymous Coward · · Score: 0

      zero notice to customers. thanks, guys. really appreciate it. even 1 week notice would have let us finish our projects.

      It's fairly common for small businesses to close suddenly like that, it usually comes down to "do we have enough cash to pay our employees for another day of work?" They probably had to make $X in profits Tuesday, but didn't, and couldn't risk having people work Wednesday without having the means to pay them for it.

    23. Re:To many classes by TheGratefulNet · · Score: 1

      the most popular things, from what I could tell (I was a member for several years) were the laser cutters. they never had enough spares to keep everyone happy, and yet so much other equip went idle most of the time.

      I'd pay money to have access to JUST laser cutters, if they maintain them and they are industrial quality.

      the 'real' laser cutters are still beyond home/hobby ownership. most other things can be garage-shed like, but not the lc's.

      once I learned how to make decent diy boxes from lc plexiglass, labels etched and ink infilled, its life-changing for a diy geek like me. my 'box making' projects could pass for pro-made chassis and they cost lunch money to make. only expense was my time, really, and it was educational and fun.

      hope something opens in the bay area to pick up the void that TS left. we had 3 shops in the bay area, more than any other, and still those lc's were busy most of the time. just give me lc access, screw the rest of the big tools! ;)

      --

      --
      "It is now safe to switch off your computer."
  4. Tech Shop closes all locations by Anonymous Coward · · Score: 0

    As someone that has enjoyed going to Techshop all I can say is I sad.

  5. Re: i too have an announcement by Anonymous Coward · · Score: 0

    Is that bullying?

  6. Re:Nothing of value was lost by xevioso · · Score: 0

    No. Deport you instead.

  7. Re: i too have an announcement by Anonymous Coward · · Score: 0
    I was bullied at work once and I didn't know until a bunch of coworkers told me that the individual had been "written up" for harassing me.

    I was like, huh? They wee a dick sometimes, but it didn't bother me and I felt bad for them.

  8. So much for those who bought "lifetime" membership by cheese_boy · · Score: 5, Insightful

    I am *so* glad I didn't buy a membership a year ago when they were trying to raise funds for moving the San Jose shop.

  9. leadership by Anonymous Coward · · Score: 0

    New CEO in 2016, 2017 - "The TechShop corporate body
    pivots to a licensing model." Then Chapter 7 Bankruptcy.

    So they expanded into locations that were not self sufficient and then abandon the idea of maker space "hardware" for the current wallstreet version of make-nothing-sell-services model and it failed.

    As a mechanical engineer I just don't understand why making goods (stuff) people want to buy has become so not-sexy in today's business world.

    1. Re:leadership by Anonymous Coward · · Score: 0

      I like Santa. Santa is coming next month. I like Santa.

    2. Re:leadership by Anonymous Coward · · Score: 0

      "TechShop offered consulting, market assessments, licensing options, curriculum, and various other managed
      services to economic development councils, libraries, non-profits and educational institutions, design firms and
      other makerspaces."

      Sounds more like another useless marketing company. Obviously the market assessments wasn't their strong suit.....

      Hopefully they were more useful than our local space. I have no clue how they can have a building and only use it for 4 hours Wed nights.

    3. Re: leadership by Anonymous Coward · · Score: 0

      Because goods have a cost, while software-as-a-service is free money. Which would you rather be selling if your goal is to maximize profits.

    4. Re: leadership by cyber-vandal · · Score: 2

      Making stuff is hard. Having lots of meetings about brand identity and designing a new corporate logo are where the cool kids are.

    5. Re:leadership by mhkohne · · Score: 1

      Because when you make unique, interesting stuff with any significant volume, you'll be rapidly undercut by commodity bottom-of-the-barrel manufacturers. Their product will be just good enough to sell, and 1/4 the price of yours and you'll be left with a warehouse full of stuff you can't sell.

      --
      A thousand pounds of wood moving at 300 feet per minute. Don't get in the way.
  10. Re:So much for those who bought "lifetime" members by Anonymous Coward · · Score: 1

    I am *so* glad I didn't buy a membership a year ago when they were trying to raise funds for moving the San Jose shop.

    But maybe if you had, they wouldn't have run out of money. Did you think of that? DID YOU!?

  11. Re:So much for those who bought "lifetime" members by Anonymous Coward · · Score: 0

    I am *so* glad I didn't buy a membership a year ago when they were trying to raise funds for moving the San Jose shop.

    I do wonder if they had not spent so much money renovating the (new) SJ space whether they might have survived a bit longer, not that the result would have been any different.

    All good things.....

  12. Re: God has answered your prayer by Anonymous Coward · · Score: 0

    *Offer not valid if you are over the age of majority.

  13. surprised ? no by Anonymous Coward · · Score: 0

    as several others posted - intriguing concept - shame that it didn't work.. but as with most commercial ventures in todays environment where the costs of doing business now are rising everyday due to some tax, fees, regulation, or government meddling - is it really a surprise? it comes down to not being able to charge enough for your product (membership) to offset those costs. Electricity, tools, employees, property (rent/lease/mortgage)... that all costs $$$.

    1. Re: surprised ? no by Anonymous Coward · · Score: 0

      It's actually more EMPLOYEES, space, utilities and insurance.

      If you have 50 people paying $100 a month you can have a nice shop space for $5k and pick up tools over time. If you are open 60 hours a week and have just one employee you are spending at least $3k on just minimum wage pay and overhead where I am. That doesn't leave much for space and the rest.

  14. They should have franchised. by wezelboy · · Score: 1

    That was my suggestion early on. Bigger impact and less risk. Overseas techshops are staying open because they are, in essence, franchises.

  15. Re:So much for those who bought "lifetime" members by Trogre · · Score: 1

    I bet a lot of people will be saying that right about now.

    All without realising that, if you had done so, you could have saved them.

    --
    "Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
  16. Re:So much for those who bought "lifetime" members by cheese_boy · · Score: 2

    But maybe if you had, they wouldn't have run out of money. Did you think of that? DID YOU!?

    I know you're joking.

    But I'll answer anyway.

    It was $7500 for "lifetime" membership.
    or $5k for 5-year pre-paid membership
    https://web.archive.org/web/20...

    Another article said something about them losing $30k/month in Pittsburgh.
    I don't think my $7.5k would have helped much.

  17. Re:So much for those who bought "lifetime" members by cheese_boy · · Score: 1

    I bet a lot of people will be saying that right about now.

    All without realising that, if you had done so, you could have saved them.

    At the time I looked at it and decided that $7500 buys me a lot of tools - and access to them in my garage is a lot more convenient.
    And I didn't have any projects planned for the next year that I'd be able to transport to there.

    I am sad to see them go.
    Just as I was sad when I heard that the Sawdust Shop had gone out of business.
    (Not I lost/wasted $7500 sad - but still sad)

  18. Re: Join me, slashdot neighbor by Anonymous Coward · · Score: 0

    Get your hands off my goat you pervert!

  19. Re:Join me, slashdot neighbor by Anonymous Coward · · Score: 0

    Best. Troll. Ever.

    But fuck this pussy quote, 9:29 please!!

  20. As a member of techshop by Anonymous Coward · · Score: 1

    I've been a member for 6 years. This was a special work place in a city with such high rents, it makes your mortgages look affordable. Granted classes are necessary, it's an investment in yourself, in addition to their responsibility. I could use equipment that's professional quality to produce prototypes, prior to a small production run, or gifts, or side projects. These machines are financially out of reach for me Metal CNC ($10k), laser cutter ($25k), Wood CNC ($18k), and waterjet ($80k). Upkeep on machines is a headache, to able to just show up and run this stuff...was a dream.

  21. Re:Nothing of value was lost by Anonymous Coward · · Score: 0

    Thank you. Come again.

  22. huge loss? by Anonymous Coward · · Score: 0

    doesn't seem so. if they couldn't attract enough people to their locations to pay to keep them afloat, it wasn't that "huge"

    1. Re:huge loss? by Stroman+Rebar · · Score: 2

      It depended on the location. Some of them were quite liquid. Some were not. I understand the Pittsburgh location was in the red to the tune of $40k per month prior to its closure. If you already have a lot of debt from expansion costs, that sort of negative cash flow is killer. The St. Louis shop where I was a member was 18 months old and just hitting the black. When you have a big corporate debt, all the locations producing a small profit isn't enough :(

  23. Re:So much for those who bought "lifetime" members by shess · · Score: 1

    I am *so* glad I didn't buy a membership a year ago when they were trying to raise funds for moving the San Jose shop.

    Imagine how happy you'd be if you'd got in on the $750 membership deal they were running for Halloween!

  24. Always puzzled me by rtfa0987 · · Score: 1

    1. First San Jose location downtown made no sense. It was in a location ripe for development, which of course happened. So they had to start over . Were locations in other cities as poorly selected? 2. With amateurs using tools, the liability insurance must have been huge. 3. Just having one person around from 9am to midnight would be expensive, much less instructors, etc.. 4. How do you control such an operation to prevent damage and theft?

  25. Never heard of them by Anonymous Coward · · Score: 0

    Obscurity never helps run a business. They must have been in San Francisco or something. No one gives a shit what goes on over there.

  26. Re:So much for those who bought "lifetime" members by Anonymous Coward · · Score: 0

    I did buy one of the $7500 memberships.. I hope to get some of the money back.. But I'm not holding my breath.

    I actually stopped going when the San Jose location moved. I thought the new location was not a good choice from the start.
    They originally had parking right at the location and had nearby food. At the new location you had to pay for parking $5 a day.
    Given that a month membership was $150, it essentially doubled the cost of membership.
    It was just another factor as to why the new facility was always empty.

    They could have moved it to somewhere a lot cheaper. I was told they chose to keep it downtown because of the inner city K-12 programs they ran.
    I just shook my head.. And knew it was only a matter of time.