Fallen drone delivery startup Swoop Aero sinks into liquidation
It raised $26 million from Main Sequence, Folklore and other big name investors and in 2022 rejected a $100 million buyout. Now Swoop Aero is being stripped for parts.
Embattled drone delivery startup Swoop Aero has officially fallen into liquidation, with its administrator BPS Reconstruction and Recovery citing "poor strategic management of the business" among the key factors behind its failure.
Swoop Aero co-founder Eric Peck put the once highly touted company under voluntary administration last month, saying he hoped to revive it with the help of investors. But its fate was sealed in two meetings between creditors and BPS Reconstruction and Recovery on Tuesday, when it was instead decided that Swoop Aero would be stripped for its parts.
In a creditor's report reviewed by Capital Brief, the administrator also recognised "poor economic conditions" as a factor in Swoop Aero's decline and blamed a "significant expenditure on research and development," under capitalisation" and "significant trading losses".
The company generated $6.6 million in revenue during the 2023 financial year, the report said, but its total losses still amounted to $9.3 million.
