Editor's note: This story has been updated with additional information from a filing with the Securities and Exchange Commission.

Pear Therapeutics, maker of prescription digital therapeutics, announced today that it has filed for Chapter 11 bankruptcy and is seeking a sale of its business or assets. 

The company will continue its scaled-down operations during Chapter 11 as it seeks a sale, and Pear will use its available cash to fund its operations and costs post-petition.

The Boston-based company's CEO Corey McCann referenced the filing on LinkedIn, stating, "Today is a difficult day for Pear Therapeutics. We announced that Pear voluntarily filed for Chapter 11 and will seek to sell assets through a sales process. We also announced a reduction in force, including me. This is certainly not the outcome I envisioned when I founded Pear in 2013."

In a filing with the Securities and Exchange Commission, Pear said it would lay off approximately 170 employees, nearly its entire workforce. The company would maintain a transition team of about 15 employees to continue operations in connection with Chapter 11. 

McCann stepped down as the company's CEO and president. According to the filing, he'll continue to serve as a board member and provide consulting services through the planned sale process. Christopher D.T. Guiffre, Pear's chief operating officer and chief financial officer, will serve as the company's executive officer. 

Via LinkedIn, McCann thanked the departing Pear employees and highlighted their accomplishment in bringing some of the first prescription digital therapeutics to market. He noted market conditions caused the company and other growth-stage businesses to face challenges over the last two years.

"Here's to the future of digital medicine that we've worked so hard to create," McCann said. 

THE LARGER TREND

Last month, Pear announced it was exploring "strategic alternatives," including a possible company sale, merger or acquisition. It hired a financial advisor to look into actions that could "maximize shareholder value," including a potential sale, M&A, divestiture of assets, licensing or other strategic transactions. 

Without a transaction, Pear said the company would need to reorganize, liquidate or pursue other types of restructuring. In a filing with the Securities and Exchange Commission, Pear withdrew its revenue and operating guidance for fiscal 2022 and 2023. It did not hold a fourth quarter and full-year earnings call.

The publicly-traded company wasn't immune to the many layoffs seen throughout the digital health sector. In November, Pear said it would cut its workforce by about 59 employees, or around 22% of the company. In July, it let go of approximately 25 employees, making up about 9% of its workforce. 

Still, last year the company established numerous partnerships to expand access to its reSET and reSET-O offerings aimed at treating substance use and opioid use disorder, including collaborating with the Wisconsin Department of Health Services, Spero Health, and the California Department of Healthcare Services. The company also announced plans to offer its prescription digital therapeutics via telehealth providers. 

Dr. Cecil Lynch offers more details during the HIMSS23 session "How the Human Genome is Changing Precision Medicine." It is scheduled for Wednesday, April 19 at 11:30 a.m. - 12:30 p.m. CT at South Building, Level 4, room S406 A.