Marlborough-based ComputerVault has filed for Chapter 7 bankruptcy, months after a Worcester tech firm founded by the same entrepreneur filed for bankruptcy in November.
Marlborough-based ComputerVault has filed for Chapter 7 bankruptcy, months after a Worcester tech firm founded by the same entrepreneur filed for bankruptcy in November.The filing marks the winding down of ComputerVault, founded in 2019. It follows a November Chapter 7 filing by Worcester-based Advans IT Services, the company founded in 2005 from which ComputerVault was spun off. Advans IT was once the largest IT provider in Central Massachusetts.Peo Nathan, president & CEO of ComputerVault, Inc.Both firms are led by Peo Nathan, according to filings in U.S. Bankruptcy Court for the District of Massachusetts.ComputerVault filed for bankruptcy May 5, listing $216,024 in liabilities and $3,214 in assets. Advans IT listed $218 in assets and $2.73 million in liabilities.Most of Advans IT’s debt relates to $2.51 million in claims tied to U.S. Small Business Administration disaster loans. Advans IT’s website now redirects visitors to ComputerVault’s site. ComputerVault did not respond to a request for comment from WBJ. Nathan was unavailable for comment. Chapter 7 bankruptcy is used to liquidate a business’ assets and close it in an attempt to pay creditors. This compares to Chapter 11 bankruptcy, which is used in an attempt to restructure debt in order to allow a business to return to profitability.ComputerVault was subject to a default judgment in a lawsuit filed by Itria Ventures, a Delaware-based financial services firm specializing in alternative business financing, according to Worcester Superior Court records.Itria’s lawsuit said ComputerVault sold $65,000 in receivables in exchange for a $50,000 advance from Itria.ComputerVault failed to make a payment in October, about a month after entering the agreement, leading Itria to attempt to recover $60,479, plus attorney fees and other related costs.Similar alternative methods of raising quick business funding played a role in the bankruptcy of prominent Worcester developer Charles “Chip” Norton. In addition to Itira, ComputerVault’s filing shows it owes a combined $65,545 to Bitty Advance of Florida and Headway Capital of Utah, two other providers of alternative business financing.The ComputerVault filing shows the company’s revenue spiked from $19,000 in 2024 to $164,731 in 2025, before falling to $9,500 from January to May of this year. The filing lists Advans IT as a company that made various payments or transfers of property to ComputerVault in the past year, totaling $33,604.Advans IT’s November filing lists nine creditors, with the largest being the SBA. An SBA loan with a $2.03-million claim dates back to 2020, while an SBA loan from August 2024 is listed with a claim of $480,300. The filing includes providers of alternative financing, including Forward Financing of Boston and OnDeck of Utah.In 2019, Advans IT was the largest IT service provider in Central Massachusetts, with $25 million in revenue and 120 local employees, according to information provided to the WBJ Research Department. Advans was located in Marlborough at that time, but later moved its headquarters to the One Mercantile office tower in Worcester, where it was located when it filed for bankruptcy in November. ComputerVault launched in 2019 to help clients address data security and efficiency challenges related to remote work, just before the COVID-19 pandemic made remote work more common.ComputerVault was previously based in One Mercantile, moving into the building in 2022 to accommodate expected growth. The company is now located at the Apex Center in Marlborough, according to its website.Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
