(Bloomberg) — Gina Bartasi, the founder of the New York-based fertility chain Kindbody, is stepping down from her role as chief executive officer.
Most Read from Bloomberg
Bartasi, who created the company in August 2018, will transition “out of Kindbody over the next couple of months,” according to the firm’s website. It said it’s creating a new “office of the CEO” in her place, consisting of President Gina Bruzzichesi, Chief Financial Officer Scott Bruckner and Chief Business Officer Shilpa Patel, to manage operations.
Kindbody has seen its valuation decline from a peak of $1.8 billion in 2023. It has been exploring a potential sale while simultaneously seeking $10 million in bridge financing to maintain operations, Bloomberg reported last week. The company attempted to orchestrate a funding round earlier this year to raise between $30 million and $50 million, but that failed to close amid investor concerns about its finances, people familiar with the situation said at the time.
Kindbody is one of the largest fertility chains in the US, offering in-vitro fertilization and other services, such as egg freezing and storage. This year, however, the startup has closed multiple clinics, according to Kindbody’s website and emails sent to patients and viewed by Bloomberg. At the end of 2023, it cut its revenue forecast and tried to shore up funding to stem a cash burn that it has described to investors as “material,” Bloomberg reported.
A Bloomberg investigation published in October 2023 found understaffed clinics and inconsistent safety protocols contributed to errors — including mislabeled, lost or accidentally destroyed embryos — at Kindbody facilities. It was based on interviews with three dozen current and former employees and patients. The company at the time disputed the characterization that it was understaffed or struggled to staff clinics and labs, though it acknowledged the mislabeling of a patient’s embryos in one case.
©2024 Bloomberg L.P.
