Homegrown luxury goods online retailer Reebonz made headlines a few weeks ago as it announced that it has appointed a provisional liquidator to wind up the company.
Reebonz had said then that it “cannot by reason of its liabilities continue its business” as it racked up debts of over S$65 million.
In a bid to pay off these debts, Reebonz will be putting up its eight-storey e-commerce hub — worth S$40 million — for sale.
Called Reebonz Building, it is located at 5 Tampines North Drive 5. According to The Straits Times, the property has been mortgaged to a bank and receivers have been appointed for its sale.
“The remaining assets comprise cash at bank, trade receivables, inventory, office and warehouse equipment. The liquidator will be carrying out the sale of assets shortly,” said liquidator Acres Advisory last Friday (October 1).
Based on complaints lodged to the Consumers Association of Singapore (CASE), Reebonz owed about S$79,000 to sellers on its platform as at September 13.
Preferential claims — mainly employee salaries — amounted to S$120,000, and the liabilities owed to unsecured creditors stand at S$17 million.
Reebonz Building for sale
Spanning 200,000 square feet, the Reebonz Building was first established in early 2017.
It houses more than just the company’s headquarters and showroom, as it also doubles up as an incubator and working space for local designers.
The building is four times larger compared to Reebonz’s previous office and distribution centre. In terms of capacity, it can stock over 500,000 types of products, which is more than 11 times the previous capacity of 45,000.
In a previous interview with Vulcan Post, Daniel Lim, co-founder of Reebonz, had said that this e-commerce hub will enhance Reebonz’s global outreach by significantly improving the company’s capabilities in dispatching goods to its customers, regardless of where they are in the world.
He added that he is considering lending workspace and mentorship to budding retail entrepreneurs within the building.
Out of the building’s eight storeys, Reebonz occupied the first, second and seventh storeys; the rest were occupied by tenants.
The company was previously touted as the largest online luxury sales company in Southeast Asia in 2014 with an annual turnover of over S$120 million globally.
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Featured Image Credit: Reebonz