New York (CNN) A New York-based toy company caught up in the collapse of a Silicon Valley bank is pleading with customers to help keep it afloat.
Camp, a venture-backed retailer, sent an email to customers on Friday announcing it was slashing prices and would use the sale to help fund its continued operations, as much of its money is in the bank. was bound up in failure.
Co-founder Ben Kaufman said in an email to customers, “Unfortunately, we had most of our company’s cash assets in a bank that just collapsed. I’m sure you’ve heard the news.”
He urged customers to use the code “BANKRUN” to save 40% on all merchandise, an apparent nod to the run on the bank that helped bring down the Silicon Valley lender. Camp also said that customers can pay full price, which will be appreciated.
Kaufman said the company is “hopeful that this will be resolved soon.”
CNN has not confirmed whether Camp had funds with Silicon Valley Bank at the time of the bank’s collapse.
The Silicon Valley bank was placed under the control of the US Federal Deposit Insurance Corporation on Friday, capping a surprising 48-hour period during which fears of a liquidity crisis at the firm prompted some startups to weigh pulling out funds. Did.
The sudden collapse of the Silicon Valley lender has prompted tech investors and startups to scramble to find their financial exposure to the bank, with founders worrying about getting their money out, making payroll and covering operating expenses.
The rapidly unfolding decline at the Silicon Valley bank is a challenging moment for the startup and tech industries. Rising interest rates have reduced easy access to capital which has helped boost startup valuations and fund ambitious, money-losing projects.
Kaufman, a former BuzzFeed executive, founded Camp in 2018. It has nine stores in California, Connecticut, Massachusetts, New York, New Jersey, and Texas.