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Fri Nov 20 2009 16:48:38

uBid Sellers Worried over Enable Holdings' Financing

By: Ina Steiner

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There have been recent reports from third-party sellers on uBid who complain of late payments from the marketplace. Enable Holdings, parent company of uBid, has been trying to arrange financing. Today's SEC filing show the issue remains serious.

According to the filing, a $500,000 loan in the form of 2009 Convertible Promissory Notes provided by Hdibu LLC, Theodore Deikel and Talos Partners LLC on October 9, 2009, is due on November 30, 2009. From the filing:

The Company is negotiating a financial restructuring with its secured and unsecured creditors which is being done at the same time the Company is attempting to secure further financing.  There is no assurance the Company will be successful with the financial restructuring. If the Company is not successful, substantial doubt exists as to its ability to continue as a going concern.

The full Form 10-Q for the period ended September 30, 2009 is available online. It's not clear how long the company has to get its financing in order. Enable Holdings' CEO Jeff Hoffman was not immediately available for comment.

Third-party sellers on uBid.com fulfill customer orders and had generally been paid weekly by uBid, which processes customer payments. We'll update this blog post as we learn more.

Updated December 30, 2009: See AuctionBytes Newsflash article from December 30 for latest news on resignation of Enable Holdings CEO.

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Readers Comments

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: thisIsRealityCheck

Mon Jan 11 22:50:07 2010

uBid paid off a bridge loan to Talos Partners, which I guess ends any relationship they had or hoped to have had with Talos.  This is the second bridge loan paid off in 2 years.   Where do you think the money came from?  Was there any announcement of a new investor?

Be careful not to read too much into this.   This 500k was what got them through the holidays.  Now, before you rejoice, wait to find out who is gong to fund them through 2009 without going bankrupt.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Really? C'mon...

Tue Jan 12 00:45:01 2010

The outstanding debt was paid before all the money was gone. See who got their paper and who owns a very large portion of the stock. Petters would be proud.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Sellers_ Worried

Tue Jan 12 10:32:11 2010

Read the 8-K filed the 11th. States that loans issued by Hdibu & Talos have been re-paid.

No mention of new investment capital.

I'm with RealityCheck, this may not be good news. Looks maybe these investors may be the lucky re-paid.

Checking the uBid site, found that listings dropped 50% over night. The less than 20 computers listed either have bids or price 3 times value.

Also found that uBid stock raised from $0.18 to $0.19.

I for one hope all is well and that uBid will re-group and servive.

Any other news out there?

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: ex-emp

Tue Jan 12 10:32:22 2010

It wasn't the employees (except for maybe a couple of them)

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Sellers_ Worried

Tue Jan 12 10:36:08 2010

ex-emp,

Do you have any contact with remaining uBid staff?

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: ex-emp

Tue Jan 12 12:04:09 2010

Sellers_Worried,

Why do you ask if I have contact?  To reiterate, I suggested that the average employee did not receive any of that stock that Really C'mon was rerferring to.  This was based upon past experiences, do you suspect otherwise?  Do you think the avg employee at uBid is getting rich at your expense? I think they are just trying to make this thing work.  

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Sellers_ Worried

Tue Jan 12 12:28:09 2010

ex-emp,

Thats a lot of questions. Let me know if I miss anything.

I ask of contact as there seems to be some activity with Enable Holdings situation. As a seller, I always seek as much information as possible.

The stock to employee's thing. I have no idea what you are talking about. You seem very angry over it. Hope you find the right person to direct your anger at.

No, I think in situations like this, the average employee generally gets screwed.

I am a seller and still would like information, as would all sellers out there. Just asking, please don't read anything wild into it.

Anybody hear anything new?

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: ex-emp

Tue Jan 12 13:29:42 2010

Sellers_Worried,

No anger, I was just responding to Really C'mon statement about who is getting the money.  Don't read emotions inot blog posts.  Especially this one, it's all over the place.

I think we are just trying to break a record with most posts in an AuctionByte's blog.  That, or we are just bored and having fun posting anonymous comments.

Who knows, Maybe I am not really an ex-employee, just stating to be one.  And you may not really be a seller.  Maybe you are really an employee.  Nobody really knows.  : >

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: call EH

Tue Jan 12 13:35:37 2010

If you want information, call someone at Enable Holdings, don't look to this blog.  Please, it's full of crock.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: RZ

Tue Jan 12 14:01:06 2010

Finally someone with some sense talking, call or email them directly and ask someone , or call or email directly the vendor who pulled merchandise , has anyone done that yet ??? Everyone is just going in a big circle here .

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Really? C'mon...

Tue Jan 12 23:10:54 2010

The reference made earlier was the fact that the MAJOR shareholder of enable is also the recipient of the 500K loan repayment, and was not directed at the rank and file employees of the company.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Sellers_ Worried

Wed Jan 13 10:22:40 2010

Got It!

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: sam

Mon Jan 18 11:40:28 2010

for those whom are interested. i am a seller on ubid. they owed us money from oct. we got paid, we are also getting paid weekly. so i guess they are back on track.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: mas

Mon Jan 18 17:06:35 2010

Getting paid weekly was not the norm, rather a deal to get good vendors posting.   As with any site, there are vendors who bring in business and vendors who ciphen off the business.   If vendors like yourself, stop posting then ubid is dead.   Right now looking at the site and the lack of any real volume (products and bids), I'm not sure I'd say they are back on track.  I'm still waiting to hear some good news (like $5 million worth of good news).

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Exubid-fan

Wed Jan 20 13:38:05 2010

Ubid used to be a great selling environment. Even though they pay ontime now, they started dictating. I think they are not in a situation to dictate. No wonder why they are goin down

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Greg

Wed Jan 20 20:58:37 2010

iheard merchants are getting paid for now. ubid needs to fix up their act with sellers. they were always unfair to sellers. for example if a customers returns a item ubid runs with the cash but would punish the seller with comision somtimes that can be 50.00 upwards per item...also i heard they if a vendor offers a 30 day warranty ubid allows the custome rto return after that time and again the merchant gets hurt....so that together with their finace has merchants holding off for now. if ubid was clever they would keep in touch with merchants reshape their policies and relationships with merchants. ubid dont think since you have hp and olimpyus you can ignore smaller merchants. what happens if they leave you tomorrow. wake up and smell the coffee. ubid used to be great,managment became to arrogant. its not too late to tuen arround.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Ralph

Fri Jan 22 12:23:53 2010

This morning I had a phone conversation with the CFO Mike Martinez. He explained to me that his company was hit by the poor economy just like everyone else, but now they're back on track with new leadership on board.

Currently I'm selling products, I'm receiving my checks weekly, and I'm being paid what is owed to me.

Both uBid and RedTag provide a great platform for sellers, and we can ALL make money together. I understand that sometimes things happen, especially with this economy, but now is the time for ALL sellers to stay committed to uBid and RedTag. The best thing we can do is keep listing our products and create an exciting atmoshphere that will attract buyers - and more sales!

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Really? C'mon...

Fri Jan 22 13:23:42 2010

New leadership? And just who would that be? Meet the new guy, same as the old guy.....

That "we were hit by the bad ecomony" shtick is just about wore out. Makes for a great financial report excuse though.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: Ralph

Fri Jan 22 13:38:29 2010

You can be pessemistic or opportunistic. Like I said, I'm getting PAID.

uBid Sellers Worried over Enable Holdings' Financing   uBid Sellers Worried over Enable Holdings' Financing

by: JOHN

Mon Jan 25 19:25:54 2010

Has anybody been paid the back payments owed yet?

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