- Spring recently laid off staff and closed its Kentucky production facility.
- Software company Amaze announced in November that it had acquired the merchandising company, formerly known as Teespring.
- “Without a buyer, we had to make the difficult decision to close the plant,” the company emailed staff.
Spring, the creator-focused merchandise company formerly known as Teespring, has laid off a number of people who worked in its production warehouse and is closing the facility, four former staffers told Insider.
Software company Amaze announced in November that it had acquired Spring. Spring’s top executives have held senior positions at Amaze, with CEO Chris Lamontagne becoming Amaze’s president, and COO and president Annelies Jansen becoming chief commercial officer.
Following the acquisition, employees at Spring’s warehouse in Hebron, Kentucky, were told that their employment with Spring had ended and that Amaze would continue to recruit workers, according to an email viewed. by Insider. The facility has done printing and embroidery for products like T-shirts and hoodies; makes posters, stickers, mugs, canvas, socks; and did the execution for the articles he did not produce.
On Dec. 30, the company called staffers to let them know that Spring was looking for a buyer for the Kentucky warehouse but had been unable to find one and was therefore closing it, said three former staff members. This has impacted the employees of its quality, supply chain, production teams, etc.
Spring and Amaze did not respond to Insider’s multiple requests for comment.
“We left work on Thursday and they called us Friday morning and said the doors were closed immediately,” said a former staff member. “I wasn’t surprised. I feel like they could have given people more notice, like two weeks notice.”
In an email to staff, which was seen by Insider, the company said:
“During the summer and into the fall of 2022, Teespring Inc. was actively seeking capital to continue its operations. The only viable offer that emerged was an asset purchase by Amaze Holding Company LLC (“AHC “). As we informed you at the beginning of November, AHC was looking for a buyer for the facility. Based on conversations with potential buyers, we strongly believed that a buyer would emerge with an offer to purchase the facility and would retain all workers. We explored potential sales of the facility and other options to make operating the facility a viable business, but unfortunately no buyers came forward and our volumes did not cannot bear the cost of operating the facility. Without a buyer, we had to make the difficult decision to close the facility effective December 30, 2022.”
The four former warehouse workers, who spoke with Insider on condition of anonymity to protect career prospects, said the move came as no surprise. Their identities are known to Insider.
“Everyone was a little suspicious about it,” said a second former staffer. “Business has been slow all year. It’s been so chaotic for the past few years. What they were saying and what was happening didn’t really match up.”
Towards the end of October, Spring assured staff that the merger with Amaze would not cause warehouse workers to lose their jobs, two former employees said.
“There was this kind of cautious optimism about it that maybe things would work out,” the second former staffer said of the acquisition.
“I think it was very thoughtless, indifferent and sad to be treated this way,” said a third former staff member, adding that some staff members had worked at Spring for years.
In early December, warehouse workers lost their benefits, two former employees said.
“At the end of the day, all they cared about was the platform of creators that had been built, not the facility that gave them their livelihood, or the people in that facility that made it happen. happen every day,” said a fourth former staff member.
The San Francisco-based startup was launched in 2011 as a platform for users to create t-shirts. By 2018, he had started focusing on creating products for content creators like YouTube stars. The company has helped content creators with production and distribution and has partnered with platforms including YouTube, Twitch, and Instagram.
But there were signs that Spring had struggled in the months leading up to Amaze’s acquisition. In July, the company laid off a number of staff from its growth, marketing and other teams, including high-level executives. Insider reported in August that some creators had complained about late payments, declining product quality and inventory issues. At the time, several former staffers were already speculating that Spring would attempt to sell the Kentucky facility.
Do you work in a creator economy startup? Do you have any advice? Contact Amanda Perelli or Sydney Bradley via encrypted messaging app Signal (+1 646-580-2044), encrypted email (email@example.com), or regular email (firstname.lastname@example.org). Check out the Insider source guide for other suggestions on how to share information securely.