The road has run out for Pear Therapeutics: The pioneering digital therapeutics company filed for Chapter 11 bankruptcy on Friday and will seek to sell off its assets to pay back its creditors.
Pear will terminate 170 employees, or approximately 92% of its workforce, and will continue to operate in limited capacity with 15 employees as it seeks a buyer. CEO Corey McCann has stepped down from his role, but will continue to serve on the company’s board and will provide consulting services.
Founded in Boston in 2014 to develop software-based medicines, or digital therapeutics, Pear went public via a SPAC merger in 2021. Last year, the company began saying it would need to raise additional funds in 2023. The company also went through two rounds of layoffs and paused development of its pipeline in 2022. Last month, Pear announced it was exploring strategic options after failing to build a sustainable business for its digital treatments.
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