Use code ‘Bankrun’: Clay toy store pleads for help after Silicon Valley Bank collapses
New York (CNN) A New York-based toy company has been caught up in the collapse of Silicon Valley Bank and is asking customers for help to keep it afloat.
Camp, a venture-backed retailer, sent an email to customers Friday announcing it was cutting prices and would use sales to help finance continued operations after much of its money was tied up in the bank failure.
“Unfortunately, we had most of the company’s cash assets in a bank that just collapsed. I̵[ads1]7;m sure you’ve heard the news,” co-founder Ben Kaufman said in an email to clients.
He urged customers to use the code “BANKRUN” to save 40% off all items, in an apparent nod to the run to the bank that may have helped bring down the Silicon Valley lender. Camp also said customers could pay full price, which they said would be appreciated.
Kaufman said the company was “hopeful that this will be resolved soon.”
CNN has not confirmed whether Camp had funds at Silicon Valley Bank when the bank collapsed.
Silicon Valley Bank was placed under the control of the US Federal Deposit Insurance Corporation on Friday, ending an impressive 48-hour period in which fears of a liquidity crisis at the firm prompted some startups to weigh withdrawals.
The sudden collapse of the Silicon Valley lender has pushed tech investors and startups to try to figure out their financial exposure to the bank, with founders worrying about getting their money out, paying salaries and covering operating expenses.
The rapidly unfolding fallout at Silicon Valley Bank comes at a challenging moment for the startup and technology industries. Rising interest rates have eroded the easy access to capital that contributed to high start-up values and funded 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.