Company with 500,000 users and 10,500 merchants collapses

A “sharp deterioration” has seen a company go bust with the person in charge labelling the decision as “gut wrenching”.

A company that boasts 500,000 users globally has collapsed in a move its managing director described as “gut wrenching”.

The buy now, pay later (BNPL) provider LayBuy Group services more than 10,500 merchants and has approximately 500,000 users globally, but was put into receivership on June 17.

Its outfits in New Zealand and Australia have collapsed, while its UK-based entities continue to operate.

Laybuy allowed consumers to purchase goods and services and spread the total cost over six weekly payments.

It was listed on the Australian Stock Exchange in September 2020 to fund growth in the UK, however it was delisted in March 2023.

Global company LayBuy Group has seen its Australian and New Zealand outfits shut down. Picture: LayBuy website

The company’s directors requested the businesses be placed into receivership following efforts to seek additional investment and a sale of the business or assets.

“The decision to request the appointment of receivers was gut-wrenching,” said Laybuy managing director Gary Rohloff.

“We were working hard to execute a plan to profitability, but this was impacted by a sharp deterioration in the retail environment. A deal to sell the business fell through at the last minute and this left the board with no option but to appoint receivers.”

Glen Kanevsky and Jason Tracy of Deloitte Australia have been appointed over Laybuy Australia Pty Limited.

A sale of the company fell through. Picture: LayBuy website

Meanwhile, David Webb and Robert Campbell of Deloitte New Zealand have been appointed receivers and managers over Laybuy Group Holdings Limited and Laybuy Holdings Limited.

“While Laybuy is not currently accepting new transactions, customers should continue to make payments as normal, and no action is required to be made by consumers at this stage,” Mr Webb said.

“The receivers are working with the directors to explore options as to whether a sale of the business can be achieved so that Laybuy can recommence enabling new transactions.”

They are working with the companies’ employees, merchants and other affected stakeholders to assess the financial position of the businesses to ascertain the way forward.

It is no longer accepting new transactions. Picture: LayBuy website

Other BNPL players have also failed in recent times.

Earlier this month, an Australian art fintech called Art Money which was used in more than 50 countries and had secured $100 million in debt finance has suspended its operations indefinitely as it desperately scrambles to survive.

In November, Openpay was put into voluntary liquidation after attempts to sell or recapitalise the business failed and it owed more than $66.1 million to creditors. OpenPay had not made any profit since its stock market debut.

[e-mail]

Originally published as Company with 500,000 users and 10,500 merchants collapses