Attabotics CEO Scott Gravelle opens up about devastating week that brought bankruptcy and Tesco MFCs deal

Last week, we reported that Attabotics, a Canadian warehouse automation systems specialist, had inked a major agreement with Tesco, and also filed for bankruptcy.

And now the company’s CEO, Scott Gravelle, has given an interview in which he discussed what happened and what comes next.

Speaking to Brittain Ladd, a supply chain consultant and former Amazon executive, Gravelle, who describes himself as “a recovering visionary, taking a long deserved break” in his LinkedIn bio, said: “The hardest day of my life was having to tell 190 people they were losing their jobs. I am so proud of what the team accomplished. I am devastated at what happened.”

He added: “I am devastated that Attabotics customers, suppliers, integration partners, and many other people are being harmed. I never took money out of the company. I don't have millions of dollars. I worked with a great team of people to build a company and I have nothing to show for it. I lost my job too and I don't know what I will do next."

Scott said that he approached Export Development Canada in April, about needing a $20 million bridge loan to fund operations through to March 2026. Scott would receive a grant for an additional $9 million if he could prove the company was funded until 2026.

The EDC agreed to approach the Ontario Teachers'​ Pension Plan, an early backer of Attabotics, about investing again. Scott then stressed to the EDC that he needed the money no later than the end of June.

He was confident that he could raise the money. Attabotics had $60 million in sales in the pipeline with Tesco, Gordon Foods, Modern Beauty Supplies, United States Department of Defense, and The RealReal onboard. The firm had recognised revenues of $37 million in 2025, and was on track to generate $100 million in revenue in 2026.

With two weeks remaining in June, however, the EDC informed Attabotics that the Ontario Teacher's Fund would not invest. With only two weeks to try and find a backer, Scott couldn't raise the capital. The EDC called in a note about this, and took ownership of Attabotics, forcing the company to declare bankruptcy.

As for what’s next, the EDC has assigned a trustee to solicit bids to sell Attabotics’ IP, a process in which Gravelle is not involved.

In a LinkedIn post, Ladd said: “What's shocking is that for $30 million, an investor can acquire the entire company of Attabotics and all its IP of 160 patents and be debt free. The former employees are anxious to return to the company. It was built with $300 million of investment and development. New Road Capital, SoftBank Investment Advisers, Blackstone, etc., should bid.”

Tesco

As RTIH reported last week, Tesco has entered into an agreement with Attabotics that will see the UK grocery giant tapping the firm’s micro-fulfillment systems to fulfill online grocery orders.

If a first installation is successful, it has committed to installing the MFCs in potentially 70 Tesco locations, and making Attabotics the preferred automated MFC solution for customers of Transcend, its fulfillment and automation spin out.

It’s a move that is likely in line with plans to grow the Whoosh and Marketplace offerings. Containers loaded with the Attabotics system are reportedly on their way to England, with the installation of the MFC beginning in the near future.

Tesco did not respond to our request for comment on the exact path forward given the bankruptcy news.

According to Ladd, the retailer stepped in and offered to co-sign a bid if the EDC would fund $20 million. The pair couldn’t agree on terms, however. “Sources from Tesco stated to me that they are “confident that the Attabotics system will work and meet their needs.” Tesco is planning on moving forward with installing the system when it arrives,” Ladd commented.

2025 RTIH INNOVATION AWARDS

Online grocery fulfillment will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.