Luxury marketplace Reebonz has reportedly caved under liabilities estimated to be around SG$65 million and according to The Business Times has appointed a provisional liquidator to wind up the company. Co-founder Samuel Lim took out notices in BT on 10 September to alert creditors that Reebonz is "in creditors' voluntary liquidation". Lim explained in the notice that Reebonz "cannot by reason of its liabilities continue its business".
According to BT, Tee Wey Lih of Acres Advisory was brought on board to manage the company's closure. Acres Advisory explained that the company's liabilities are approximately SG$65 million with most of the exposure to financial institutions. A check by MARKETING-INTERACTIVE found that its website has been under maintenance since 4 September. "We will not be accepting new orders. We will keep you updated on what's brewing very soon," it added.
Multiple reports including BT and The Straits Times said Reebonz delisted from the Nasdaq in 2020, about 17 months after it was listed there. The company failed to maintain a minimum share price of US$1 for more than 30 days. MARKETING-INTERACTIVE has reached out to Reebonz and Acres Advisory for comment.
Reebonz came under fire last month when disgruntled sellers lodged complaints to the Consumers Association of Singapore (CASE). CASE told MARKETING-INTERACTIVE, it received 37 consumer complaints against Reebonz from the beginning of 2019 to date. Buyers complained that the pre-owned luxury products sold on Reebonz "were counterfeit or not authentic", adding that the products were "of poor quality", said president of CASE Melvin Yong.
Additionally, sellers were owed more than SG$30,000 as of mid-August, and 11 complaints filed with CASE in 2021 were from sellers instead of buyers. Despite the agreed pay-out period of 20 days, these sellers from the White Glove Service did not receive payment for the items sold even after waiting for several months. Under this service, Reebonz picks up an from the seller for free and makes an offer after an inspection from the Ateliers. The company would take a cut of up to 40% if the item is sold, and customers are expected to receive the payout within 20 business days.
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