Zirtual a startup that unexpectedly ceased its operations on Monday, after firing over 400 employees via email, has got a second chance to make a reentry into the market. As it has been found that the company has worked out an acquisition deal with Startups.co.

Two days the closure, founder and CEO Maren Kate Donovan finally surfaced, explaining that the 4-year-old company had simply grown too fast, meaning that it was wasting too much of cash that it was earning.

She said that Zirtual worked out a deal to be acquired by Wil Schroter, CEO of Startups.co, a startup launch platform. Startups.co will buy Zirtual and relaunch the service, which provides personal assistants to help clients with tasks like managing calendars, booking travel and doing research.

It has been said that employ4ess of Zirtual were notified about the acquisition and were also given an opportunity to re-apply. But it was not clear how many employees would be hired back in the new company.

Schroter in a separate note mentioned that all the employees who reapply will will be taken in. “Ideally we'd like to keep everyone, but given that the previous state of the company was unsustainable, it's not reasonable to think we can continue to do so”, said Schroter.

Zirtual since start of this year has been hiring employees. It announced in March that it would be filling 100 new jobs on the West Coast, a move that one employee said was unwarranted.

Donovan in her post noted the increased cost that came from converting its workers from contractors to employees with benefits, a move that can add 20% or more to labor costs.