Online ticket marketplace Razorgator laid off the staff at its Marina del Rey headquarters and locked the doors yesterday. No ticket inventory is available on its site. The startup has hired David M. Johnson of financial advisory firm Sherwood Partners to assist with the “formal insolvency process.”
Founded in 2005, Razorgator had raised $58.8 million in funding and debt financing in 6 rounds. Lead investors now left licking their wounds include resepected venture capital firms Oak Investment Partners and Kleiner Perkins Caufield & Byers.
"Razorgator is filling for an assignment for the benefit of creditors, a legal process in many states including California for troubled and insolvent companies in a proceeding governed by state law rather than federal bankruptcy law" reports Amplify. "The process gives Razorgator and its investors greater control over the winding down of the company, although it does not give Razorgator an automatic stay against legal claims."
It is unclear how many ticket sellers and brokers are unpaid or had inventory on the site when it shuttered.