Luxury Marketplace, Reebonz, Undergoes Liquidation Voluntarily For They Owe More than $30K to Their Sellers

By
Shawn Ambrose
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If shopping is your pastime, as it is for many of us, you’ll probably know that not all businesses are popular with their customers.

Many of them receive negative, 1-star reviews on e-commerce platforms due to various complaints such as late deliveries or inferior products.

Other businesses are loved by their customers but have a bad relationship with their sellers, most likely due to delayed payments for products.

So if you happen to have complaints from both your buyers and sellers, then you know you’re doing something wrong.

In the case of Reebonz, they had no choice but to call it quits.

Luxury Marketplace, Reebonz, Undergoes Liquidation Voluntarily For They Owe More than $30K to Their Sellers

Reebonz, known for buying and selling a vast range of luxury items, is undergoing voluntary liquidation.

On 3 Sept, the company appointed provisional liquidator Tee Wey Lih of Acres Advisory to wind up the company.

Reebonz director Samuel Lim Kok Eng took out notices in The Business Times yesterday (10 Sep) to inform creditors that the company is in creditors’ voluntary liquidation.

Companies undergo a creditors’ voluntary liquidation when their members or shareholders determine that the company can no longer satisfy its debts and deem the company to be insolvent.

Indeed, Reebonz is believed to have liabilities of around $65 million.

Once a company’s decision to undergo liquidation is confirmed or approved by shareholders, creditors will meet to decide if they want to stick with the provisional liquidator chosen by the company or nominate their own.

A creditor’s meeting is expected to take place on 1 Oct.

Curiously, Reebonz’ site says the company will be undergoing maintenance from 4 Sep.

Image: Reebonz

“All orders till 3rd of Sept will be fulfilled. We will not be accepting any new orders. We will keep you updated on what’s brewing very soon,” the notice said.

Founded in 2009, Reebonz has business operations in eight countries, including Malaysia, Indonesia, Taiwan, Hong Kong, Thailand, Australia, and South Korea.

Owes More Than $30,000 to Sellers

According to figures from the Consumers Association of Singapore (CASE), the number of complaints against Reebonz has been rising rapidly in the last three years.

In 2019, three complaints were received. This number shot up to 12 in 2020. 18 complaints have been received as of August this year.

Complaints were received from both sellers and buyers.

Buyers’ complaints centred around the quality of the products purchased from the platform, as they were either of poor quality or were allegedly counterfeit.

Sellers have also complained that they have not received payment for the products they supplied to Reebonz.

As of 26 Aug, Reebonz was reported to have owed more than S$30,000 to 11 sellers.

Bad Reviews From Buyers

A quick google search of the company will tell you how popular it is with its customers at the moment.

One reviewer said she sold a Louis Vuitton bag for over S$1,000 back in Nov 2020 as well as a Hermes and Dior bag for more than S$10,000 three months ago, but has not received any payment yet.

There were similar complaints from other sellers, as well as a few from buyers, with one calling Reebonz a “scam”.

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Shawn Ambrose
Email: [email protected]