In a dramatic turn of events, Calgary's innovative robotics firm Attabotics Inc. is reportedly preparing to file for bankruptcy protection as financial troubles mount, despite receiving substantial backing from major institutional investors and the Canadian government.

Sources indicate that the startup, known for revolutionizing warehouse automation, has been burning through millions monthly. An insider revealed that the company is ready to seek protection under the Canadian Bankruptcy and Insolvency Act, although it remains unclear if the filing had officially occurred by Wednesday morning.

Amid concerns over its financial health, a communication intended for employees hinted at actions already taken: a notice of intention to propose a plan under the bankruptcy act was submitted on June 30. However, curiosity surrounds this claim as recent checks on official bankruptcy filings returned no record of Attabotics, leaving many baffled.

Social media buzzed with reports of mass employee layoffs earlier this week, raising further alarm about the company's viability. Attempts to reach out to CEO Scott Gravelle went unanswered, heightening speculation.

Founded in 2015, Attabotics has amassed nearly $200 million from prominent investors including the Ontario Teachers’ Pension Plan and Comcast Ventures, alongside $34 million from the federal government's Strategic Innovation Fund in 2020. With a workforce ranging from 150 to 200 employees, the company specializes in sophisticated automation equipment designed to optimize warehouse operations.

Attabotics' unique approach mimics ant-colony structures, allowing robots to navigate vertical storage solutions, thus reshaping traditional warehouse logistics. Their innovative technology has attracted clients like Canadian Tire and UK giant Tesco, but recent troubles culminated in a lawsuit settlement with Canadian Tire over a warehouse fire that the startup alleged tarnished its reputation.

As the dust settles on this shocking development, the future remains uncertain for Attabotics, a company once heralded as a beacon of innovation in the robotics industry.