AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Fri Nov 20 2009 16:48:38

uBid Sellers Worried over Enable Holdings' Financing

By: Ina Steiner

Sponsored Link

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.

Comments (412) | Leave Comment | Permalink
Readers Comments

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

by: LT UCM

Sun Sep 5 18:23:41 2010

Look at the web traffic reports & the actual bids on the site. Looks bad.

Not out very much. Need to audit
all shipments over the year to confirm.

So us pro merchants need to just  
be content w/ eBay,Amazon & Buy  

Too bad, have been selling on uBid for years. Another casualty
of bad management.

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

by: Tapechewer

Tue Sep 14 10:00:29 2010

Turn off the lights on your way out please.

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

by: Stockholder

Thu Sep 16 12:04:58 2010

Seems as though unable has lost its CFO. Who is next? Who will be last?

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

by: LaughingInOrangeJumpSuit

Thu Sep 16 16:46:51 2010

4 Cents? And no rudder?

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

by: somone please explain what this means

Fri Sep 17 23:53:37 2010

Can someone please explain what the statement below means, it is taken directly from yahoo finance .. does this mean they are going bankrupt ??

Item 8.01 Other Events.

On September 16, 2010, certain creditors of the Company filed an involuntary petition in the Unites States Bankruptcy Court, Northern District of Illinois, Eastern Division, sitting in Chicago, Illinois, pursuant to Chapter 11 of Title 11 of the United States Code. Under the involuntary petition, a trustee has not been appointed and the Company will continue to operate its business during such time that it prepares a response to the bankruptcy petition.

The Company has retained bankruptcy counsel to represent them in the bankruptcy proceedings.

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

by: Zee

Sat Sep 18 11:51:18 2010

It means the creditors are forcing the Company into Bankruptcy court to either re-organize chapter 11 and go on with business and try to pay everyone back with a approved plan or liquidate chapter 7 and go out of business . It will be up to the court appointed trustee once one is appointed , also all finiancial transactions will go through the trustee once one is appointed .

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

by: what does this mean

Sat Sep 18 17:05:46 2010

what usually happens to companies in similar situations? Also if they go chapter 7 and go out of business, A) do people who are owed money such as sellers get any compensation, and B) what happens to the website ubid.com its still going to exist  who would get hold of it?

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

by: Zee

Sat Sep 18 19:12:12 2010

Yes if chapter 7 is the option ,all vendors and creditors owed money will eventually get paid out , but not 100% , usually 20-40 cents on the dollar and it could take 6 months to a year to see anything  . The company can be re-born by other investors if someone wants to invest some fresh seed capital and basically start over .

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

by: what does this mean

Sun Sep 19 00:00:15 2010

what do you think will most likely happen in the current situation they are in?  It was stated they have hired some company call Manchester companies to try and oversee their daily operations. Do you think they will be able to fix the current situation or does this seem that they will be forced into bankruptcy,also even if Enable does go under ubid.com would still remain, what would happen with the site?

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

by: Zee

Sun Sep 19 07:49:03 2010

Alot of variables going on here, they are $50 million in debt overall and about $1.7 million right now to these pressing creditors ,so Manchester Companies needs to find a buyer and/or investor willing to pony up some money very quick,that is what I believe they were hired for ,plus re-structure the operation so it finally starts showing a profit after 11 years ,maybe the creditors are trying to take over the Company ,they cut everything they can cut , so now they need to grow top line revenue.

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

by: what does this mean

Sun Sep 19 12:09:49 2010

Wow how the heck did they get 50 million in debt? So you think that basically the creditors will just push Enable out and take over the website themselves? The problem is that it seems that many large merchants on the site have stopped posting their items, HP being the largest    

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

by: Zee

Sun Sep 19 14:19:37 2010

They have been borrowing several million a year for the last 6 years to fund the Company , so it adds up quick,I am not sure about the creditors wanting the company ,this is just speculation,some vendors have stopped posting because ubid stopped paying them ,so ubid cannot make the site look good to investors without vendors posting product. It is a very tough situation, that is why they need some short term money to pay the vendors and keep them posting to keep cash flow coming in to pay the operating expenses and make the site look full again and than they need to work out a debt re-payment plan for the future.

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

by: Mike

Sun Sep 19 15:30:13 2010

I got an email from the CFO last week. The email said the transactions after 9/1 will be paid weekly. Is it true? Did anybody receive the checks?

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

by: Sam

Mon Sep 20 12:12:49 2010

Nothing ,more fraud .

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

by: Realityczech

Mon Sep 20 17:34:16 2010

Folks, this company has never, repeat never, been in the black for more than two consecutive reporting periods. The ubid website has been active for over ten (10) years and it has close to zero name recognition. And has little to no real assets. CFO and others have recently ''resigned''.

Done. It is all over but the cryin'.

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

by: Mike

Tue Sep 21 15:04:51 2010

Enable Holdings stock is up 400% to $0.1 per share. What's the news? Anybody knows?

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

by: Sam

Tue Sep 21 19:42:30 2010

Traded 130,000 shares , average volume is 7000 shares .???

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

by: Smilin' Bob

Mon Sep 27 01:45:50 2010

Tick...tock. Tick...tock.

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

by: UCM Fool

Fri Oct 1 18:02:34 2010

http://www.auctionbytes.com/cab/cab/abn/y10/m10/i01/s02

uBid Auction Site's Parent Enable Holdings Forced into Bankruptcy

uBid.com suspended payments to third-party sellers for a period of time last year, according to some sellers, who said they were never paid what was owed after the payments resumed. The auction site's parent company Enable Holdings Inc. has been experiencing financial woes after the credit markets tightened, and now creditors are taking action. On Thursday, sellers received a letter informing them of a proposed sale of the parent company's collateral held by secured creditors.

Enable Holdings was forced into Chapter 11 bankruptcy in September by three unsecured creditors, but secured creditors acting through Sunrise Bidders Inc. are pushing for a sale of the company's assets in an auction now scheduled to take place on October 8th, pending a final Bankruptcy Court hearing. They wish to acquire the assets and keep the business a going concern.

According to the letter sent to sellers, Sunrise Bidders is negotiating with the creditors who had forced the bankruptcy along with another entity who is interested in providing Sunrise Bidders with working capital if it is successful in its bid to acquire the Enable Holdings assets.




***Who is sunrise bidder?
***Anyone going to continue to post items?

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

by: Sam

Sat Oct 2 08:26:55 2010

Has anyone gotten paid any back money owed in the last month ?

Click to view more comments
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.