Technology company Bitwise Industries, which in 2021 had partnered with ProMedica to transform the Jefferson Center and furloughed its national workforce this past week, terminated its co-CEOs on Saturday.
The departures of Jake Soberal and Irma L. Olguin Jr. were announced in a written statement.
The company's board of directors appointed Ollen Douglass interim president, effective two days ago.
The Fresno, Calif.-based company, involved in software development, workforce training, and work space-sharing, told workers in six cities May 29 not to come to work because of cash-flow issues, several California news outlets reported.
"It was an incredibly difficult decision to suspend operations at Bitwise Industries and furlough the hardworking team members," Mr. Douglass said in a statement. "The board of directors was recently made aware of the company's cash deficit by management and took immediate action as a result."
Toledo-area leaders were taken by surprise. City, county, and nonprofit leaders were trying to figure out what the furloughs meant for local employment as well as the future of the remodeled Jefferson Center, to be called the Toledo Innovation Center near downtown. Officials have touted the site as a cornerstone of an UpTown district that is undergoing a revitalization.
The $38 million project at 1300 Jefferson Ave. is complete, outside of a few finishing touches, officials said.
Ms. Olguin Jr., a 2004 University of Toledo graduate, founded the company alongside Mr. Soberal in 2013.
In February, 2021, the company announced a partnership with ProMedica to turn the Jefferson Center, a former post office and Toledo Public Schools alternative school, into an incubator site for start-up technology companies. ProMedica had acquired the 100,000-square-foot building from TPS in 2019.
In Toledo, Bitwise had pledged to create 378 jobs with an annual payroll of $20.4 million.
Bitwise had also pledged to offer low-income residents training and provide co-working spaces for innovators at the facility. Plans also called for a cafe, a multiuse event space, classrooms, and patio seating.
Officials said they had expected the building to open in the coming weeks, with Bitwise planning to hold a ribbon-cutting ceremony late this year. Now the timeline is unclear.
In all, 900 Bitwise employees were furloughed nationwide. Company operations were suspended May 30.
"The board of directors has begun an investigation into what led to these current circumstances and events and is engaging independent experts for support," the company's statement read on Saturday.
In his role as interim president, Mr. Douglass will oversee the investigation, drawing on his background in auditing and experience as a former chief financial officer, the announcement said.
Mr. Douglass is the CEO of Hanover Street Advisors, a consulting firm focused on supporting early-stage venture-backed companies.
Prior to that, he launched and led Motley Fool Ventures, which invested in Bitwise. Mr. Douglass has more than 30 years of experience in finance, including as an auditor at KPMG.
First Published June 4, 2023, 1:07 a.m.
