Zumobi Inc. filed for bankruptcy with plans to sell its business for $750,000 to ESW Capital LLC, with the venture-backed business saying that it is facing headwinds in an advertising-technology industry consolidated around big players like Google and Facebook Inc., WSJ Pro Bankruptcy reported. The company, which raised more than $40 million in financing over the years from backers that include majority shareholder Oak Investment Partners, has cut its workforce to four staffers. In 2015 it had 30 employees. Zumobi sought protection from creditors on Friday in U.S. Bankruptcy Court in Wilmington, Del., with a proposed agreement to sell its business to ESW, which invests in business software companies. The company began looking for a buyer last year. It contacted more than 70 potential strategic and financial buyers. ESW alone made an offer and in August submitted a letter of intent to acquire the business, Zumobi Chief Executive Ken Willner said in a court filing. The proposed purchase offer consists of $750,000 in cash, plus up to $150,000 in other potential consideration. Zumobi, with about $61,000 in assets, has about $13.3 million in liabilities, most of which is owed to Oak Investment in the form of an unsecured bond and related interest, the chapter 11 petition shows.
