TechShop Announces Chapter 7 Bankruptcy; Closes All Locations
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.
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.
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.
Making stuff is hard. Having lots of meetings about brand identity and designing a new corporate logo are where the cool kids are.
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.
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.
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 :(