Troubled luxury marketplace Reebonz has appointed a provisional liquidator to wind up the company.
Notices were taken by the firm’s director Samuel Lim in newspaper The Business Times today (Sept 10) to inform creditors that Reebonz is in creditors’ voluntary liquidation, the newspaper reported.
Reebonz, an e-commerce marketplace that was founded in 2009, said that it “cannot by reason of its liabilities continue its business”.
Tee Wey Lih of Acres Advisory has been appointed provisional liquidator on September 3rd to handle the winding-up of the company.
On the company’s website and app, however, it said that it is undergoing maintenance from September 4th, and all orders will be fulfilled till September 3rd.
“Reebonz will be undergoing maintenance from September 4th onwards. All orders until September 3rd will be fulfilled. We will not be accepting new orders. We will keep you updated on what’s brewing very soon,” the marketplace had put up this notice for its customers on its platforms.
In a creditors’ voluntary liquidation, directors of the company make an assessment that it is insolvent or likely to become insolvent, and pass resolutions to put the company into provisional liquidation.
A subsequent meeting of shareholders will be held to confirm the liquidation. Thereafter, the creditors will have an opportunity to decide if they want to keep the provisional liquidator or change the liquidator.
Reebonz owes more than S$30,000 to sellers on its platform
According to complaints lodged with the Consumers Association of Singapore, Reebonz was reported to have owed more than S$30,000 to 11 sellers on its platform as at August 26th. Sellers complained they had not received payments for a few months, although the agreed payout period is 20 business days.
Reebonz’s White Glove service allows people to sell their pre-owned bags through the platform. The service has been suspended since August.
Last year, Reebonz was delisted from the Nasdaq as it failed to maintain a minimum share price of US$1 for more than 30 days. That’s 17 months after it went public on the US stock exchange.
Featured Image Credit: The Vault Online
