At Tech.eu, we frequently cover European companies expanding into new markets. But what happens when a US company enters Europe—and fails? I recently heard from a group of former workers in Lithuania who are facing this very predicament.
Who is Raydiant?
When I reached out to folks in the local tech ecosystem in Lithuania, most had no idea of Raydiant's presence there.
Founded in 2017 with a San Francisco HQ, Raydiant is an AI-powered in-location experience management platform trusted by major brands in retail, e-commerce, restaurants, and more. It creates kiosks, virtual agents, and digital signage in retail stores and restaurants to help retail companies create digital, personalised in-store experiences.
It's used by 4,500 brands, including Red Bull, Chick-fil-A, Harvard University, and Wahlburgers. The company has raised $50 million from investors like 8VC, Atomic Ventures, Mark Wahlberg Investments, and Bloomberg Beta.
An enthusiastic expansion into Lithuania
In 2022, Raydiant opened an office in Vilnius, serving as the company's largest location outside of its San Francisco headquarters.
The Vilnius office housed various departments, including customer success, technical support, marketing, finance, and operations.
As of December 2024, Raydiant Lithuania employed 18 individuals. The company had ambitious plans to expand its Lithuanian team, aiming to onboard 70 new members in 2022 and increase the number to 130 by 2023.
But now, the company has let the bulk of the Lithuanian office go, initiating insolvency proceedings.
What happened to the local workforce?
According to local workers, Raydiant has effectively trapped employees in legal limbo by:
- Blocking access to work tools and payroll while refusing to issue termination documents.
- Keeping employees officially employed on government records, preventing access to unemployment benefits or legal protections.
- Delaying all layoffs until the company declares bankruptcy, ensuring no severance is paid.
Many team members were abruptly laid off but never received official termination documents. I have seen the correspondence and documentation between the employees and management.
They remain registered as employees, which prevents them from obtaining government assistance or seeking new jobs.
One team member shared:
"They have not even officially terminated my employment in Sodra, meaning I cannot apply for unemployment benefits. This is yet another violation that directly impacts my financial stability."
According to another:
"What's even worse? Others before me received similar contracts and never got paid. This isn't an accident. This is a pattern."
Another shared:
"I recently attempted to negotiate a fair termination agreement with Raydiant Lithuania, proposing reasonable terms that respect Lithuanian labour laws and basic professional ethics. My request included:
✔️ Payment of outstanding wages
✔️ Compensation for unused vacation
✔️ Payment for forced downtime ("prastova") caused by being locked out of work tools while still officially employed
✔️ Severance pay, since the termination was initiated by the company
✔️ Acknowledgment that I was unable to perform my duties due to restricted access
✔️ Removal of unfair confidentiality clauses
✔️ The right to continue my legal complaint with VDI
Raydiant Lithuania's response? :
A complete refusal to negotiate. Instead, they insist on an agreement that:
❌ Ignores unpaid wages, severance, and downtime compensation
❌ Forces me to waive my legal rights
❌ Includes unfair confidentiality restrictions
❌ Fails to acknowledge that I was blocked from my work tools
❌ Does not offer any adjustments or alternatives
They justify this by claiming they are "initiating insolvency procedures"—yet no bankruptcy has been officially declared, and no bankruptcy administrator has been appointed."
Until the company declares insolvency proceedings, the company remains fully responsible for its obligations under Lithuanian labour law.
Despite receiving notices from the company's legal representatives about insolvency and potential bankruptcy, no formal layoffs have been finalised.
The reprisal of Raydiant under a new name?
Correspondence suggests that Raydiant may be attempting to restart under a different name while evading its obligations to employees.
This strategy appears to be orchestrated by corporate restructuring company MCA Financial, which was hired after Raydiant secured funding from Multiplier Capital.
According to team members:
"They will still keep a few employees from EMEA as contractors, which means they can find funds if there are none as they are claiming. This means they are not truly bankrupt but playing the law in Europe to avoid paying everyone their packages per country law."
"This is the real Raydiant culture - one where employees are discarded without proper compensation, legal obligations are ignored, and now the company is using bankruptcy as a tool to avoid paying what they know."
Where is the management team?
The CEO, Bobby Marhamat, and Head of Marketing, Ryan Helmstetler, are still listed on the Rayiant website, despite their departure a while back.
Siamak Khajehpour Tadavani reportedly served as CEO of the Lithuanian branch but has no presence on LinkedIn.
Despite repeated outreach, Raydiant's leadership has stopped responding entirely.
A company not without controversy
It's not the first time Raydiant has attracted controversy. I contacted Assistant managing editor William Hicks at the San Francisco Business Times.
He shared that Raydiant launched a pitch competition in 2022 in San Francisco, offering small businesses a year of free retail space, build-out support, and a $10,000 stipend.
However, the winners, Rize Up Bakery and Kiss My Boba, never moved in because the supposed retail space was actually an office building without the necessary permits or running water, making it impossible for the food businesses to operate.
As delays mounted, Raydiant failed to follow through on its commitments, leaving Kiss My Boba with $30,000 in sunk costs from hiring staff and purchasing equipment.
The company stopped responding, prompting the business to sue for damages. In response, Raydiant countersued, accusing the winners of making excessive demands, but the court dismissed its cross-complaint.
Lithuania: home to world-class talent and value-driven innovation
I contacted several people in the Lithuania tech space.
One requested anonymity that they understood that the company is currently facing financial challenges, which is why cost optimisation measures are being implemented across all "Raydiant" divisions, not just the one in Lithuania.
"We have also seen employee testimonies from the company circulating on social media. However, at this point, we do not have enough information to fully assess the measures being taken or the company's next steps."
They did, however, highlight Lithuania's highly valued talent pool and its ability to create added value and meet the ambitious demands of global businesses.
"This is one of the key reasons why foreign-owned companies, including "Raydiant," choose Lithuania as a location for business development. Naturally, global changes and internal company processes may lead to various business decisions."
The importance of putting employees first "the very people who played a key role in the company's decision to expand in Lithuania," is paramount.
"Here in Lithuania, we have seen positive examples where companies not only provided financial compensation but also actively worked with recruitment agencies, collaborated with other ecosystem players, and maintained open communication with their employees. We have already shared such recommendations with the leadership of "Raydiant."
The situation has worsened as I began writing this article. Affected employees are now being completely ignored by Raydiant’s leadership after rejecting the company’s one-sided and unethical mutual termination agreement.
Adding to the complexity, not only Lithuania-based employees are affected—workers in Amsterdam have also been impacted by Raydiant’s abrupt actions.
Efforts to seek help from labor authorities have hit roadblocks:
Sodra has confirmed it cannot assist in this situation, leaving employees without support for unemployment benefits.
The Lithuanian State Labour Inspectorate (VDI) has stated it will issue a position on "prastova" (forced downtime) on April 2nd, but it cannot intervene to force the company to issue termination documents.
As a result, former employees are now actively seeking legal help to hold Raydiant accountable and secure their rightful compensation.
Employees deserve respect—even when a company is struggling financially. I hope this article helps to raise awareness of the position Raydiant's European employees are in.
I reached out to representatives at Raydiant, MCA Financial, and Multiplier Capital and have not received any response to date.
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