Denver-based startup Fluid Truck has made some significant changes as it navigates through bankruptcy proceedings. With permission from a judge, the company has decided to abandon two leases in the city in an effort to streamline its operations and potentially sell itself to a Utah-based company for approximately $10 million.
The two locations that Fluid Truck has vacated are 400 W. 48th Ave. and 1441 W. 46th Ave., both situated near the intersection of Interstates 25 and 70 on the north side of Denver. The former was an office building, while the latter was a small warehouse. In a statement to BusinessDen, company spokeswoman Emily Allen mentioned that Fluid has relocated to a coworking space in the RiNo neighborhood of Denver, which better suits their current needs. Despite these changes, there have been no layoffs among the company’s 127 employees.
In their request to abandon the leases and personal property at these locations, Fluid Truck informed a bankruptcy judge in Delaware that the leases did not provide any benefit to the company and that abandoning them would result in significant cost savings on a monthly basis. Originally founded in 2016 as Fluid Market, an all-encompassing rental app, Fluid Truck shifted its focus exclusively to vehicle rentals in 2018. The company has since expanded to other major cities and formed partnerships with companies like Ikea, raising over $80 million from investors in the process.
Following financial losses of $18.7 million in fiscal year 2022 and $20.6 million in 2023, Fluid Truck filed for Chapter 11 bankruptcy in October. The company’s interim CEO attributed the financial struggles to an unsuccessful growth strategy that was impacted by the pandemic. As part of its restructuring efforts, Fluid Truck is in the process of finalizing a sale to Kingbee Rentals, a similar company based in Utah, for around $10 million. A sale hearing is scheduled for December 13 at the U.S. Bankruptcy Court in Delaware.
In a recent court filing, Fluid Truck disclosed its assets and liabilities for the first time, revealing $76 million in assets and $34.5 million in liabilities. The majority of the assets, $54 million, consist of business losses that can be used as deductions for future taxes. The company’s tenure at 400 W. 48th Ave. was marked by challenges, including disputes with the landlord over rent payments and allegations of financial mismanagement.
Overall, Fluid Truck is taking decisive steps to restructure its operations and move forward with its sale to Kingbee Rentals. The company’s willingness to adapt and make necessary changes underscores its commitment to navigating through this challenging period and emerging stronger on the other side.
