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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.




Comments (412) | Permalink

Readers Comments

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

by: Patricia

Fri Nov 20 20:33:05 2009

I doubt I could sell on a venue where they collect the money then I have to wait to be paid.  

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

by: dsi r4

Sat Nov 21 07:36:19 2009

Even i cant afford to deal with them, already i have been facing some finance crisis at the moment so cant believe them really otherwise i don't bother anything else apart from a payment.

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

by: Derek

Sat Nov 21 10:59:54 2009

Patricia, you don't sell on Amazon?

I do believe they collect the money and take their cut and send you the rest.

Am I wrong?

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

by: brian

Sat Nov 21 19:05:49 2009

i do believe, ubid will be able to obtain financing, its a valuable site. they just need time. i am currently a seller with them i got a check this week. they have a good plan, their are many invenstors lined up.

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

by: confused

Sat Nov 21 23:48:20 2009

really Brian?  Have you met these many investors?

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

by: BestDayEver

Sun Nov 22 12:40:04 2009

Brian, this is 2009 not 2003. Money is not so loose any longer.

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

by: ebay Nonsense

Mon Nov 23 00:04:16 2009

Where's ebay or Pierre? Why aren't they jumping at the chance to buy out another competitor like they did in the early years?  They'd either threaten to sue for some minor thing or buy them out and then immediately padlock their doors.  

I guess their ruthlessness hasn't changed much over the years except now their focus is on non-TRS's no matter how small or large and making their lives miserable.

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

by: ubid seller

Tue Nov 24 13:43:11 2009

I doubt they will be able to secure funding and sadly, many sellers will be left hanging. We are a seller who Ubid had not paid us in over 45 days.  Our last order fulfillment with them has been 60 days.  
When sellers stop listing merchandise on the site from lack of payment there is little value left in ubid.

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

by: sam

Tue Nov 24 13:47:42 2009

How much do they owe you ?

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

by: BestDayEver

Tue Nov 24 15:06:43 2009

Tick,tick,tick........

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

by: ubid seller

Tue Nov 24 16:47:11 2009

Sam- Between $10 and $15k.  Despite the CEO's verbal promise to make weekly payments none have been received.

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

by: Sean

Tue Nov 24 18:40:17 2009

I received my check last week.ubid is a good site, we get better buyers then ebay on ubid. we think they will be fine as the big boys, the manufactors are with them, im sure they are privy to the real numbers. if they are confortable so are we.

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

by: confused

Tue Nov 24 22:23:11 2009

now I am really confused.  Sean, you are getting paid and other guys aren't.  Wouldn't that be preferential treatment? Either someone's lying, or there is something fishy going on.

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

by: sam

Tue Nov 24 23:42:41 2009

Yes, they are paying vendors on current orders but not on back money owed , so if you did not ship anything from Nov 9 forward , you will not get paid right now on any previous orders. They are dangling the carrot to keep you listing . A $20 million revenue company should be able to come up with $15,000 or something is seriously wrong .

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

by: uBid Truth

Wed Nov 25 14:05:32 2009

All it takes is three creditors who are owed more than a token amount to get together and force the company into involuntary bankruptcy.

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

by: unfortunate truth

Wed Nov 25 15:57:21 2009

that doesn't solve anything.  bankruptcy would mean none of the sellers get paid. Better to keep solvent and operating.  Just where does the cash come from?

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

by: sam

Wed Nov 25 16:26:28 2009

Thats right bankruptcy wipes out all the vendors debts , so that is the worst possible case . They need some investors to give them some operating capital so they can keep operations going .

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

by: BestDayEver

Wed Nov 25 17:23:20 2009

Sam, a profit is needed to keep operations going. Not a stretch to think that will not happen. Sooner or later the markers will have to be called in.

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

by: sam

Wed Nov 25 17:36:20 2009

Well that is true , but they have cut overhead by about 80% per month and they negotiated some debt down , so with a little luck and time , and if the economy ticks up a bit they might make it.

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

by: uBid Truth

Fri Nov 27 00:15:40 2009

Forcing the company into bankruptcy would eliminate the shareholder debts which are owned by vultures.  Then the assets of the company would be liquidated by a trustee and the unsecured creditors would be paid from that money.  

Business bankruptcy does not simply eliminate debt.  It forces a liquidation under court control so that insiders take the losses and the legitimate creditors get paid.

if EH were to fight the bankruptcy, they would have to convert to Chapter 11 and reorganize, and again the shareholders take the hit so that the company is restructured to pay the creditors.  The LAST people who EH can afford to screw in a reorganization are the Vendors upon whom it depends for its very existence.

That is why a business bankruptcy filing, whether a forced BK or a voluntary one, is what is needed here.

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