Skully Shuts Down Over ‘Personal Piggybank’ Allegations

Skully was a crowd-funded company that had planned to produce augmented reality motorcycle helmets. Although its campaign was funded in 2014, the firm has told backers that it’s closing down, because it ran out of funds – despite trying to sell itself to LeEco.

Skully has filed for Chapter 7 bankruptcy. Unlike Chapter 11, this filing means that Skully is not required to repay money to lenders – including backers, who paid as much as $1,500 for one of the helmets. However, to date two companies (Fusar and Ruroc) are offering to credit Skully customers with their own products.

Analyst Comment

A lawsuit filed by Isabelle Faithhauer, a former executive assistant to Skully CEO Marcus Weller and his co-founder/brother Mitch Weller, claims that the Wellers used the funds from Skully’s Indiegogo campaign to fund their own lifestyles, including the rent on their apartment, cars and strip clubs. It’s not often that these pages read like a tabloid! (TA)