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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: GotAMinute

Mon Dec 21 01:47:10 2009

"No decent executive is going to agree to grow this company back, even if it were possible, for $250K."

Huh. They have a top exec there now that makes a bit more than that (OVER 350K) and he has done nothing to increase or at least stabilize the business. Funny how that works.

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

by: Rick

Mon Dec 21 11:43:09 2009

Ubid operating costs all in is $350,0000 per month, that is 4.2 million per year , which means 30 million in revenue gets them there and paid , that is definitely a number they can do .That is why it is a very attractive company to pick up on the cheap and take a shot to make some real money down the road .

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

by: GotAMinute

Mon Dec 21 14:02:57 2009

Market cap is under $4M. Heck, they might owe HP that much at the moment?  

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

by: Rick

Mon Dec 21 15:44:36 2009

They owe 2 million to vendors total , which they are paying out over the course of 2010 .

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

by: moreubidtruth

Mon Dec 21 19:12:35 2009

Keep in mind, that uBid oeprating costs includes no marketing (except for maybe email), no major capital improvements, and paycuts that have their employees working for less than market value.

Besides all of this, they are in financial dis-array.  Moneys owed to HP, sellers and loan sharks (bridge loans).   Best solution is to restructure, change management and clean house.  

uBid.com is a viable platform, but can not cover past debts.   EH as a liquidator is a great vision, but not obtainable without lots of new capital.

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

by: ubid seller

Mon Dec 21 22:32:39 2009

Glad to hear some vendors are getting paid.  Unfortunately we still have not.  Furthermore, any inquiries, directly and via attorney, have not received responses yet.  We have been a significant seller on uBid for many years and have enjoyed a mutually beneficial relationship during that time.  

Late last year and early Q1 09 we experienced payment issues and pulled off selling on the site for a bit.  Discussions with Management convinced us to try again and we did in late Q2.  However we have not fully received the funds uBid collected on our behalf for merchandise shipped to buyers.

The lack of communication and a clear statement from Sr. Management is disappointing at the least.

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

by: Sal

Tue Dec 22 08:35:12 2009

To ubid seller, no vendor has been paid for past sales yet ,(before Nov), the only payments being made are for current sales going forward.

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

by: Pricer

Tue Dec 22 10:13:15 2009

Here is an idea: Keep selling on our platform and you just might get the money that we owe you, but you will for sure get any monies owed from this point on. Really?

Sounds like a ponzi scheme to me. The apple does not fall too far from the tree.

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

by: Robert

Tue Dec 22 13:15:23 2009

To anyone that is currently getting paid...Can you please tell me which bank your current uBid check is coming from?  The routing number and account number would help, but I will settle for just the name of the bank.  

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

by: ubidtruth

Tue Dec 22 22:58:53 2009

Pricer you are about 70% right when you classify it as a Ponzi Scheme, except that uBid merchants are INVOLUNTARY investors in such schemes.

Anyone owed money ought simply to sue EH and its officers personally as well, for theft and fraud, which by the way are non-dischargeable in Bankruptcy.

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

by: ubidtruth

Wed Dec 23 13:15:41 2009

The rumor this morning -- unconfirmed at this hour -- is that Jeffrey Hoffman has stepped down as CEO of Enable Holdings.

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

by: Sal

Wed Dec 23 15:02:09 2009

Who gave you that idea ?

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

by: it is not a rumor

Wed Dec 23 16:57:23 2009

it is true.

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

by: Sal

Wed Dec 23 17:06:28 2009

So is this good news or bad news for the future of the Company ?

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

by: it is not a rumor

Wed Dec 23 18:20:08 2009

that is a $20 million dollar question.  Did he resign to make room for investors who want to put their own guy in place.  Or, did he resign because bankruptcy is only days away.   Maybe Wood can tell us, since he seems to have the inside scoop on how great the company will be in 2010.

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

by: Pricer

Wed Dec 23 18:35:05 2009

He had no business at the helm, took the company in too many different directions, while making sure that he, a few friends and his VP's made some money along the way. Well, thanks for playin.

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

by: SW

Wed Dec 23 18:42:45 2009

yes , I think Redtag was his Idea , that was a waste of $2 million dollars . The main ubid site needed the attention and work

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

by: it is not a rumor

Wed Dec 23 19:46:47 2009

c'mon, ubid didn't show a profit for 11 years.  The site is great place for sellers, but never made money.  That wasn't the fault of the CEO. 'cept that he didn't clean house and put together proper organization to run the company.   I'd blame the board for that, not the CEO.  

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

by: it is not a rumor

Wed Dec 23 19:46:59 2009

c'mon, ubid didn't show a profit for 11 years.  The site is great place for sellers, but never made money.  That wasn't the fault of the CEO. 'cept that he didn't clean house and put together proper organization to run the company.   I'd blame the board for that, not the CEO.  

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

by: Pricer

Thu Dec 24 11:16:57 2009

It was not the board that took the company in five different business directions, it was the two gentlemen at the top of the executive roster.

Investigate who made up the board,and who they answered to, for the last four years or so and you will notice they had bigger issues to deal with than what happens to a 5M$ company that never turned a dime.

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