reporter2
02-10-21, 17:24
Reebonz Building to go on sale to pay debts as company winds up
https://i.imgur.com/wPfD6Hx.jpg
Prisca Ang
Oct 1, 2021
SINGAPORE - The Reebonz Building that served as the headquarters of the troubled online marketplace is going on sale.
The property at 5 Tampines North Drive 5 - Reebonz's key asset - 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 on Friday (Oct 1).
Reebonz director Samuel Lim Kok Eng said on Sept 10 that the company "cannot by reason of its liabilities continue its business".
He also announced the appointment of provisional liquidator Tee Wey Lih of Acres Advisory on Sept 3 for the firm's winding up.
A special resolution was passed at a creditors' meeting on Friday to place the company into liquidation.
Mr Tee's appointment as liquidator "was unanimously approved by the creditors", said Acres.
Reebonz's debts amount to $67 million, including $49 million to the mortgagee.
Preferential claims - mainly employee salaries - amounted to $120,000 and the liabilities it owes to unsecured creditors stand at $17 million.
Reebonz's offices were locked when The Straits Times visited the eight-storey building on Sept 14 and no one answered the door.
The firm used the first, second and seventh storeys. Other floors are occupied by tenants such as supply chain solutions firm Vallen Singapore and logistics company J&T Express.
A Ninja Van driver who wanted to be known only as Mr Farhan said he had been working at the building for four months and has never once seen a worker from Reebonz.
Reebonz was set up in 2009 by Mr Benjamin Han and brothers Samuel Lim and Daniel Lim. It started as a pure retailer and then launched a platform in 2015 that allowed people to buy, sell and trade.
It also launched a merchants' marketplace in the same year to give consumers access to products from boutiques around the world.
It spent US$29 million (S$39.4 million) to build its Tampines headquarters and e-commerce hub from scratch to house its operations and warehousing and distribution facilities. The space opened in 2017.
Chief executive Samuel Lim said at the time that the hub would allow Reebonz to scale across the region by having a centralised distribution centre for its products in 17 countries.
Reebonz has since fallen out of favour with investors and customers.
It was delisted from the Nasdaq last year - just 17 months after it went on the Wall Street stock exchange - for failing to maintain a minimum share price of US$1 for more than 30 days.
The Consumers Association of Singapore said Reebonz owed about $79,000 to sellers on its platform as at Sept 13, according to complaints lodged with it, while 15 buyers had made complaints over issues such as inauthentic items and poor quality of pre-owned luxury bags and jewellery.
Experts told ST last month that the company's fall from grace had been a long time coming and was hastened by the Covid-19 pandemic, which has resulted in stiffer competition from other e-commerce players and caused customers to tighten their belts.
https://i.imgur.com/wPfD6Hx.jpg
Prisca Ang
Oct 1, 2021
SINGAPORE - The Reebonz Building that served as the headquarters of the troubled online marketplace is going on sale.
The property at 5 Tampines North Drive 5 - Reebonz's key asset - 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 on Friday (Oct 1).
Reebonz director Samuel Lim Kok Eng said on Sept 10 that the company "cannot by reason of its liabilities continue its business".
He also announced the appointment of provisional liquidator Tee Wey Lih of Acres Advisory on Sept 3 for the firm's winding up.
A special resolution was passed at a creditors' meeting on Friday to place the company into liquidation.
Mr Tee's appointment as liquidator "was unanimously approved by the creditors", said Acres.
Reebonz's debts amount to $67 million, including $49 million to the mortgagee.
Preferential claims - mainly employee salaries - amounted to $120,000 and the liabilities it owes to unsecured creditors stand at $17 million.
Reebonz's offices were locked when The Straits Times visited the eight-storey building on Sept 14 and no one answered the door.
The firm used the first, second and seventh storeys. Other floors are occupied by tenants such as supply chain solutions firm Vallen Singapore and logistics company J&T Express.
A Ninja Van driver who wanted to be known only as Mr Farhan said he had been working at the building for four months and has never once seen a worker from Reebonz.
Reebonz was set up in 2009 by Mr Benjamin Han and brothers Samuel Lim and Daniel Lim. It started as a pure retailer and then launched a platform in 2015 that allowed people to buy, sell and trade.
It also launched a merchants' marketplace in the same year to give consumers access to products from boutiques around the world.
It spent US$29 million (S$39.4 million) to build its Tampines headquarters and e-commerce hub from scratch to house its operations and warehousing and distribution facilities. The space opened in 2017.
Chief executive Samuel Lim said at the time that the hub would allow Reebonz to scale across the region by having a centralised distribution centre for its products in 17 countries.
Reebonz has since fallen out of favour with investors and customers.
It was delisted from the Nasdaq last year - just 17 months after it went on the Wall Street stock exchange - for failing to maintain a minimum share price of US$1 for more than 30 days.
The Consumers Association of Singapore said Reebonz owed about $79,000 to sellers on its platform as at Sept 13, according to complaints lodged with it, while 15 buyers had made complaints over issues such as inauthentic items and poor quality of pre-owned luxury bags and jewellery.
Experts told ST last month that the company's fall from grace had been a long time coming and was hastened by the Covid-19 pandemic, which has resulted in stiffer competition from other e-commerce players and caused customers to tighten their belts.