The company will also permanently shut down. The move comes after Buyk suddenly laid off employees earlier this month. Buyk began offering rapid-delivery services last year in New York and recently expanded to Chicago. The company listed assets and liabilities of as much as $10 million each in its bankruptcy petition, filed Thursday, according to Bloomberg.
“We have diligently explored all possible options and partnerships to restructure Buyk and keep the business going, however, the war in Ukraine and subsequent restrictions in funding have unfortunately made it impossible to continue operations,” Buyk CEO James Walker said in a statement.
Buyk was unable to access funds after sanctions were imposed on Russian companies. Co-founders Slava Bocharov and Rodion Shishkov were listed as Buyk’s largest equity holders, according to Bloomberg. The pair also founded Samokat, one of Russia’s biggest instant grocery-delivery companies. The company is partially owned by Russian bank Sberbank, which has been sanctioned.
The company is one of many in the ultra-fast delivery startup scene, which has seen huge demand throughout the COVID-19 pandemic. This demand has attracted millions––and even billions––of investment dollars as delivery services companies expand.