Silicon Valley Bank collapse hits companies such as Camp, Compass Coffee
California state regulators closed Silicon Valley Bank on Friday
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Kids retailer Camp and coffee company Compass Coffee are among businesses affected by the shutdown of Silicon Valley Bank.
Camp wrote Friday on Instagram that its bank "got shut down by regulators" and that it was offering 40% discounts on products online when customers used a promotional code. Its co-founder, Ben Kaufman, also told customers via email that Camp "had most of our company’s cash assets" there, according to CNN.
"We’re asking that you RUN, don’t walk to our BANKRUN sale," the company wrote on Instagram.
Kaufman told FOX Business in an email the company doesn’t "know when we can access our cash."
He said there has been an "outpouring of customer support which will hopefully see us through" the situation. Camp is "hopeful it will be resolved by someone swooping in and restoring balances," according to Kaufman.
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The District of Columbia-based Compass Coffee, meanwhile, faced impact in connection to its payroll, according to an email from CEO Michael Haft that was obtained by FOX Business.
Haft said in the email that Compass Coffee’s payroll provider was "severely impacted" by the collapse of Silicon Valley Bank, with the coffee company learning its payroll "was not processed by the bank as planned" this week.
| Ticker | Security | Last | Change | Change % |
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Employees are expected to receive their payments by midnight Friday, over the weekend or Monday at the latest,, the Compass Coffee email said, citing information from the payroll provider. The timeline for the employees would reportedly depend on their bank.
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The coffee company was "working tirelessly" on the issue and "taking every possible step" to avoid such a thing occurring again, Haft said. Compass, the email said, changed providers for the coming week.
FOX Business reached out to Compass Coffee regarding the email.
The Federal Deposit Insurance Corporation (FDIC) said in a press release Friday that SVB was closed by the California Department of Financial Protection and Innovation, which in turn appointed FDIC as the receiver of all insured deposits of the bank.
A customer stands outside of a shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Depo (Justin Sullivan/Getty Images / Getty Images)
SILICON VALLEY BANK SHUT DOWN BY REGULATORS
"All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023," the FDIC said. "The FDIC will pay uninsured depositors an advance dividend within the next week."
SVB’s closure came after the bank earlier this week disclosed mounting losses and announced plans for a $1.25 billion stock sale with little interest.
Breck Dumas and Suzanne O’Halloran contributed to this report.