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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: it is not a rumor

Thu Dec 24 12:13:05 2009

The board hired the man on top;  they bought his vision.   Then, after sh*t hit the fan, the two men on top spent all their time looking for financing.  That left noone to run the operations.  

If the board had bigger issues to deal with, then why didn't they just let the company go under 2 years ago.

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

by: Pricer

Thu Dec 24 12:54:05 2009

Point taken. Good question.

Merry Christmas. See you next year.

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

by: BestDayEver

Mon Dec 28 12:49:45 2009

Any official news on Hoffman yet?

Has it been confirmed that he ''resigned''? No annoucement as of yet that can be found.

And does that mean he does not get his golden parachute?

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

by: it is not a rumor

Tue Dec 29 00:40:51 2009

golden parachute?  what could possibly could be golden here?  Is there some hidden cash from daddy that we are unaware of?

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

by: Simon

Tue Dec 29 08:56:08 2009

Ubid is a very poorly run Company , it lacks supervision and Management on all levels , the right hand does not know what the left hand is doing half the time . Customer service is very poorly trained and supervised . No set Standards or procedures . It needs alot of work and help to get it to where it should be .

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

by: Realityczech

Thu Dec 31 10:58:46 2009

"it is not a rumor", looks like you were correct.

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

by: ubidtruth

Thu Dec 31 11:33:37 2009

The sickening thing is that Hoffman gets 50 grand while the sellers who are OUT THEIR MERCHANDISE AND SHIPPING COSTS are not given the money that they deserve FIRST.

Hoffman should be sued along with uBid to make him personally pay off these ripped-off vendors.

And yes, it is a rip-off until they are paid everything, plus interest.  uBid had no right to spend other people's money in that case; the vendors did not consent to loan uBid money to meet bloated executive salaries.

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

by: Pricer

Thu Dec 31 13:10:13 2009

Newsflash: ubid has been using the certified merchant funds to float the company for years. How anyone would agree to sell on a platform and get paid two weeks after the sale, pending any rediculous returns of course, is utterly amazing.

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

by: Adam Curry

Thu Dec 31 19:25:25 2009

I stopped selling on uBid years ago, because of their payment policies. There were times (and this is when they were paying in what they called a 'timely manner') that I sold an item just after they 'closed out' the payments for a week and it would be around three weeks until I'd receive a payment for that sale. That kind of wait does not work for me.
I assumed months ago when uBid called me that they had changed their payment scheme, but no - I was told it was still the same.
I was convinced then that this company is running some  form of Ponzi scheme - using new monies to pay old sales - and they are falling apart now since fewer vendors are selling on their market place.

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

by: ex-emp

Fri Jan 1 03:57:37 2010

as an ex-employee, I can safely say that we had no inclinations that it was a ponzie scheme. But honestly, for years no one cared about bottom line.  From the early on (before hoffman), from top-down, there was never a concern about operational defecits.  All that mattered, was increasing revenue.  Hoffman came in and changed the biz model.  Still operations did not matter.  Revenue plummeted, but we were building new business model.  Then Petters went crashing down. At first, we thought we were going down with him, but we were told we were clean.  Then the smoldering wick just continued to burn.  It just burned and burned.  

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

by: currentseller

Sat Jan 2 03:01:37 2010

we are a seller at ubid. at one time, 5 digit monthly. now (very low volume). we have always watched closely our business and seen ubids pending doom & gloom long ago.

ex-emp; i beleive you. keeping employee's informed of operations most often has negative effect. keep e'm happy and feeling secure. thats the ticket. our experience with ubid support before 3Q 2009 was always good. thanks, best of luck to you.

huffman is gone. thats good. we should keep in mind that troubles with ubid exsisted long before huffman.

we now know who is running the show at ubid. i copied the 8-K filed with the SEC on 31-Dec-2009 for all to see.

Effective December 22, 2009, the Company’s Board of Directors elected Timothy E. Takesue Interim Chief Executive Officer of the Company.  Mr. Takesue had been serving as the Company’s Executive Vice President of Account Management.  The Company and Mr. Takesue anticipate that Mr. Takesue’s service as Interim Chief Executive Officer will be on a short-term basis as the Company identifies and engages a replacement Chief Executive Officer.  The Company and its Board of Directors is in the process of identifying and interviewing replacement Chief Executive Officer candidates.

having a ubid/enable long-timer at the helm should spark confidence to investors and bring new ideas to the table. don't you think?

enable also filed a CT ORDER with the SEC on 31-Dec-2009. i could not open as it's confidential. i quick veiwed enables SEC filings back to 2003. not sure what a CT ORDER is, but it's a first for enable.

Happy New Year.

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

by: ex-emp

Sat Jan 2 11:24:41 2010

currentseller,

I did not mean to give the impression, that operational stuff was hidden from employees, but rather that it was not always a priority.

A business is always either growing or dying.  Profit comes from either increased revenue, or decreased costs.   For years the ubid community (mgmt, board, investors) hoped and expected huge growth in revenue.  Many people profited from this hope and expectation (including those currently at the helm).  So long as the revenue was rising, people believed the company will at sometime be profitable.  Just think of all the excess inventory you can buy (and quickly turn over) with revenue coming in.  Slimy investors like Tom Petters encouraged this, unfortunately the business and the sellers paid for it.  It was always based upon increasing revenue and "easy money".

Now, revenue is decreasing, money is not so easy, and slimy investors are running away.   The company is left with a business that just does not work.

The only answer is to completely clean house.  Whether this is bankruptcy or not, they need to restructure.  Mr. Takesue brought in much business to the company, but he is not the one to restructure the company.  

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

by: Onehundredballsintheair

Sat Jan 2 15:53:13 2010

Past history has proven that the acting CEO would have a tough time turning a profit running a lemonade stand.

Good luck.

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

by: whatsnew?

Mon Jan 4 22:11:07 2010

whats the latest word - things are pretty quite

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

by: Ron T.

Tue Jan 5 10:45:49 2010

Has anyone been paid the back money owed that they promised to start paying as of Jan 1 ??

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

by: whatsnew?

Tue Jan 5 12:22:14 2010

not yet - guess i can stop holding my breath

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

by: stillopen?

Wed Jan 6 15:58:04 2010

any word yet?

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

by: ubidTruth

Wed Jan 6 16:09:22 2010

A CT ORDER is a confidential treatment order.  The company filed a document and requested confidential treatment of something on 12-8-2009.

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

by: stillopen?

Wed Jan 6 16:11:48 2010

the filed another CT on 31-DEC-2009

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

by: ubid seller

Wed Jan 6 18:42:49 2010

nope.  Not a dime to be seen.  

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