New York (CNN) A New York-based toy company has become involved in the collapse of Silicon Valley Bank and is begging customers for help to stay afloat.
Camp, a venture capital-backed retailer, sent an email to customers on Friday announcing it was slashing prices and would use the sale to fund its continued operations after much of its cash was tied up in the bank’s bankruptcy.
“Unfortunately, we had most of our company’s cash assets in a bank that just collapsed. I’m sure you heard the news,” co-founder Ben Kaufman said in an email to clients.
He urged customers to use the code “BANKRUN” to get 40% off all merchandise, in an obvious nod to the bank run that may have contributed to the downing of the Silicon Valley lender. Camp also said customers could pay full price, which they said would be appreciated.
Kaufman said the company “hoped this will be resolved soon.”
CNN did not confirm whether Camp had money in Silicon Valley Bank when the bank collapsed.
Silicon Valley Bank came under control of the US Federal Deposit Insurance Corporation on Friday, capping a stunning 48-hour period in which fears of a liquidity crunch at the company prompted some startups to withdraw funds.
The sudden collapse of the Silicon Valley lender has prompted tech investors and startups to retrace their financial exposure to the bank, with founders worried about getting their money back, making payrolls and covering operating expenses.
The rapidly unfolding fallout at Silicon Valley Bank comes at a challenging time for startups and tech industries. Rising interest rates have eroded easy access to capital, soaring startup valuations and funding 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.
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