Operations have ceased within the company, Weller has been asked to sign a confidentiality deal with investors. However Weller told TechCrunch he will not sign and that he’s completely walked away from all dealings with the company as of 10 days ago.
“I’m shocked and deeply saddened that they would now shut this company down. We were raising a Series B to continue raising capital but then we had a buyer…I’m almost dubious about this.”
Skully’s AR-1 helmet is sold out in every size and no one can order. The shutdown leaves several vendors and Skully’s manufacturer Flextronics with unpaid bills and at least 50 full-time employees out of a job. It’s unclear if any of the vendors will be paid.
That also means the more than 3,000 people who pre-ordered a helmet may never get one.
Weller said that he and his brother were forced out of the company after investors disagreed with the LeSports deal he brought to the table. The deal would have seen the company sold. But the investors wanted to raise money themselves an inside round. .
Investors from Intel Capital determined it was better to just shut the whole company down instead.
“We’re disappointed Skully has closed its doors. We’ve been focused on the company’s success for nearly two years and have recently been trying to negotiate a funding round to keep it going,” Intel Capital said in a statement. “We’re certainly sorry for the employees who are losing their jobs, the crowdfunding backers whose investments didn’t work out and the customers who’d pre-purchased product. We continue to be excited by the promise of this kind of wearable technology.”