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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

This user has validated their user name. by: Ming the Merciless

Thu Dec 3 23:18:26 2009

Given the inherent nature predictable behavior of modern American corporations and their executives, where do you think current revenues are going?

Anyone still selling on uBid must have money to burn because that's what you're doing.

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

by: lookatthenumbers

Fri Dec 4 14:02:40 2009

where does the money go? With a $400,000 per month overhead, the first 13k of your sales goes to overhead every day.  That doesn't leave much wriggle room.

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

by: Randy

Fri Dec 4 14:33:55 2009

Well, remember they are not selling there own merchandise ,they are selling 3rd party vendors merchandise and taking a commission off the sale, so most of the money coming in is not theres . Just the commission part of it , which is around 10-12% .

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

by: BestDayEver

Fri Dec 4 15:15:04 2009

How anyone sells on ubid is beyond me. Sell your product, hope it is not returned, and then get your funds in two weeks if all goes to plan. Incredible.

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

by: Randy

Fri Dec 4 17:50:43 2009

Any other ubid vendors out there ?? Any comments or information would help all of us .

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

by: answerToRandy

Sat Dec 5 17:42:39 2009

Randy, I'm not sure if you were defending ubid or being sarcastic.  uBid does not just take a commission from the sale.  Rather, they take the revenue, use it for salaries and overhead, then pay the vendor less commission.  The problem is that because of their current financials,  ubid has decided not to pay the vendors the revenue due them.

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

by: john

Sun Dec 6 01:48:18 2009

i'm owed over 15.000

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

by: Realityczech

Sun Dec 6 11:02:10 2009

This is the same company that shed some 28 employees, many long-term, last year without any severance. In one day.  If that is how they treat their own how does that reflect on business practices in general? It all starts from the top.

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

by: john

Sun Dec 6 11:26:42 2009

Does anyone know if we can sue or account managers for some form of deception since the lies they kept saying at first was that maybe the check is lost and they will look into it. can we sue them personally for pulling us and tricking us into keep selling?

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

by: Realityczech

Sun Dec 6 18:45:09 2009

John, more than likely your account manager is doing as told and has no idea what is actually taking place in regards to the financials of the company. Should they be telling you all is okay if they know it is not? No. Should the executive/director team give truthfull guidance to them? Of course.
Questions and issues of payment of lack of payment would be best handled by the CFO/CEO/VP's and Directors.  

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

This user has validated their user name. by: Ming the Merciless

Sun Dec 6 19:34:19 2009

In the United States, anyone can anyone else for any reason. Whether a court allows a case to proceed is quite another matter.

Corporate employees can be sued both in their professional as well as personal capacities by anyone with standing to do so. The issue then becomes whether an account manager is actually worth suing in their personal capacity. Probably not.

If uBid goes into bankruptcy, a federal bankruptcy judge will ultimately determine who gets paid and how much which depends on type and number of creditors the remaining value of the corporation's assets.

It would be more to the point to sue the CEO and CFO in professioanl and personal capacities if they knowlingly passed on information down the line they knew at the time was false and/or misleading. CFOs have as much legal responsibility as CEOs in many cases. These people, moreover, are more likely to be worth suing than account managers.

This is also the kind of case in which you can expect to see a class action suit consisting of unpaid sellers.




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

by: john

Sun Dec 6 20:39:45 2009

i think all ubid sellers owed should find a means of getting together and coming up with a solution to this problem. We all did our part and risked all we had to run a sucessful business. We should not be punished for UBID's lack of a plan as tough as this economy is.

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

by: john

Sun Dec 6 20:42:07 2009

Another thing is that as a seller, i never got the notice i saw in this chat. does that mean that they dont tell you if you dont ask?

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

by: GW

Sun Dec 6 21:28:13 2009

Yes , it would help if some vendors banded together , but who knows how to contact them and get the ball rolling ?? Also John ,are you still selling or do they just owe you back money ?

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

by: john

Sun Dec 6 21:33:29 2009

As of right now i am still selling and owed back money but as soon as my current listings end, i am pulling out until i get caught up. I cannot pull my auctions right now because they all have bids. Are you a seller GW?

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

by: GW

Sun Dec 6 21:42:19 2009

So if you are still selling , have they honored there promise to pay for current sales ? Because several other vendors state that ubid already missed payments after promising to pay for current orders on a weekly basis .

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

by: john

Sun Dec 6 21:45:22 2009

No they havent. i really did not think much of it until i stumbled on this blog.

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

by: GW

Sun Dec 6 21:47:04 2009

Have you been trying to get answers from your Account Rep ? If so , what are they telling you ?

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

by: john

Sun Dec 6 21:49:47 2009

Their answer was that maybe the check got lost. Then the check finally shows up waaay late. Then the checks stopped showing up. Then the next replies were that they are working on it. Well now i saw the so called re-organization plans letter in this blog

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

by: GW

Sun Dec 6 21:53:33 2009

Well , they already broke that plan by not paying vendors for current orders, so that plan does not mean a thing . Are you able to contact any other vendors to see if anyone is getting paid ? There seems to be plenty of merchandise on the site .

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