uBid Auction Site's Parent Enable Holdings Forced into Bankruptcy
By Ina Steiner
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.
A notice is scheduled to appear in the October 3rd issue of the Chicago Tribune newspaper advertising a public auction on October 8 for uBid's assets to be offered for sale in bulk only and sold to the highest bidder. The creditors intend to bid at least $875,000 for the assets.
The bankruptcy court approved the Tribune ad and scheduled a final hearing for October 6 at 10 am.
Jeffrey Hoffman had resigned his position of CEO in December, and the company named Patrick Neville CEO in February. Mr. Neville has yet to respond to AuctionBytes' inquiries about the current events.
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About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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