Rebl Corp collapse leaves Coast businesses trapped in expensive contracts

A Gold Coast business is facing a $40,000 bill for a 30-second advertising video following the collapse of a “cost neutral” media company that had promised clients regular content.

A GOLD Coast business is facing a $40,000 bill for a 30-second advertising video following the collapse of a “cost neutral” media company that had promised clients regular content.

Sunshine Coast company Rebl Corp’s subsidiaries Media Rebl and Digital Rebl have gone into voluntary liquidation, leaving more than 200 small businesses locked into costly software rental agreements.

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Brian Norman from My Egypt at Mudgeeraba is one of over 200 businesses forced to pay for a service he’s not receiving. Picture Glenn Hampson.

Mudgeeraba man Brian Norman, who owns import-export business My Egypt, says he is one of many now having to pay a fee of $1700 a month, despite Rebl Corp’s liquidation.

He has gone to an industry ombudsman for help and is hoping to join a class action.

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The original deal spruiked by the network of salesmen promised to provide his small business with 24 promotional videos annually for no cost.

The client would sign two agreements, one for the supply of the content, and the other a rental agreement with a third party financial provider that would fund access to the software.

ReblCorp would then forward a payment for software into client accounts, which would then be retrieved by the finance company, leaving the small business in a “cost neutral position’’.

Brian Norman from My Egypt is now signed up to pay $440 weekly as part of a defunct contract with ReblMedia. Picture Glenn Hampson.

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It is understood the third party financier would then pay Rebl Corp a lump sum for the agreement.

Mr Norman said he had been happy with the process and had received his first 30 second video, until the company entered into liquidation on March 1.

The contract will ultimately cost Mr Norman $40,000 over the course of two years.

“That is a lot of money for one 30 second video, for that amount I could have gotten Angelina Jolie to appear in it.”

Mr Norman said he was incredibly wary of the original pitch from Rebl Corp and the agreement had taken him months before he was confident to move ahead.

“We are just a husband and wife team. To carry this extra cost is devastating.”

“We are just a husband and wife team. To carry this extra cost is devastating.” Picture Glenn Hampson.

Liquidator Worrells Forensic Accountants told the Bulletin it was still too early to understand the full effect of the collapse.

“It is a question for the financier whether there is an ongoing obligation. At this stage we are still receiving information.”

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) confirmed it had received complaints about the practices of businesses trading under the Rebl Corp banner.

“We now have 75 complaints; most from the Sunshine Coast. Three are from the Gold Coast,” the spokesman said.

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ASBFEO has written to each of the finance providers seeking information on their dealings with Rebl Corp.

Rebl Corp director Michael Maunder could not be contacted, despite repeated attempts by the Bulletin.

Mr Maunder was also the previous director of Viewble Media and The Shoppers network businesses which pitched a similar “cost neutral” media deal.

He held the role of director until October 2017.

According to ASBFEO, both the collapse of Viewble Media and The Shoppers Network “created serious issues for the businesses involved.”

All Rebl Corp phone lines had since been rerouted to Intergra Corporation, which supplied the softwear and telecommunication to Rebl corp.

To contact the Ombudsman or make a complaint, visit www.asbfeo.gov.au.