Bankrupt in the UK
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"Gone bankrupt!
Online Revolution the company that purchased the UK rights to franchise
iSold it in England have effectively run out of money and fell into
receivership today. The 2 company stores have closed their doors and the
5 privately franchised iSold It stores are all waiting for news about what
we do now?
Well the bubble has finally burst. In case you haven't already heard the UK
franchise of iSold It has gone into administration. Most of the staff at head
office were sacked today and the administrators are now dealing with
everything.
Things are getting very serious over here. Initial franchisers are starting to
sell up. iSold It has put a gagging order on Franchisees talking to anyone
about their businesses or even sounding negative to one another. Yet, as
always they still continue to sell franchises!
Phillip Molloy the head franchise owner for the UK is starting to get worried
and their rescue plans have serious flaws."
Online Revolution the company that purchased the UK rights to franchise
iSold it in England have effectively run out of money and fell into
receivership today. The 2 company stores have closed their doors and the
5 privately franchised iSold It stores are all waiting for news about what
we do now?
Well the bubble has finally burst. In case you haven't already heard the UK
franchise of iSold It has gone into administration. Most of the staff at head
office were sacked today and the administrators are now dealing with
everything.
Things are getting very serious over here. Initial franchisers are starting to
sell up. iSold It has put a gagging order on Franchisees talking to anyone
about their businesses or even sounding negative to one another. Yet, as
always they still continue to sell franchises!
Phillip Molloy the head franchise owner for the UK is starting to get worried
and their rescue plans have serious flaws."
Company Info:
Online Revolution Ltd t/a iSold It
1 Brooklands
Moans Moat Drive
Redditch. B98 9DW
T: 01527 594 600
F: 01527 594 648
E: info@isolditonline.co.uk
Online Revolution Ltd t/a iSold It
1 Brooklands
Moans Moat Drive
Redditch. B98 9DW
T: 01527 594 600
F: 01527 594 648
E: info@isolditonline.co.uk
- Chain of eBay drop shops cops it?
The future of Online Revolution, the UK franchiser of eBay drop shop brand iSold
It, appears to be in the balance amid reports that it has gone into receivership.
The company is refusing to comment on its future, referring enquiries instead to
accountants BDO Stoy Hayward.
It hasn't returned calls, but one of iSold It's UK stores said the firm’s situation
was “fragile”, adding: “We’re just trying to get on with things. It’s all very touch
and go.”
Officially launched last year, Online Revolution owns the UK franchise rights for
iSold It, one of the largest international chains of eBay drop shops. iSold It
charges a large fee to shops that want to carry its brand, but claimed last year to
have over 1,000 stores under contract worldwide. According to the firm’s
website, six shops have been set up using its name in the UK, while a further
four were expected to open in the coming weeks.
It's not clear whether this will still happen, or what the future holds for its
existing outlets. More generally, the move seems likely to raise questions over the
drop shop concept – described by iSold It’s UK managing director Phillip Molloy as
“the most exciting business opportunity to hit the UK for a long time” at the firm’
s launch last year.
It’s yet to emerge what’s behind the firm's problems, but they follow closely after
iSold It's decision to suspend new applications for franchises and concentrate on
its existing businesses.
Earlier this month, AuctionBytes published a letter from CEO Ken Sully to the
company’s partners, saying it did not “feel comfortable” selling any new franchises
until it managed to decrease the failure rate of its stores. It said over 60 of its
outlets had closed, blaming variations in "average selling prices and labor hours",
among other things.
Indeed, Trevor Ginn, head of consultancy at rival eBay service provider
Auctioning4u, said the problem wasn’tthe actual idea of drop shops, but iSold It’s
business model:
“Standalone drop shops, as promoted by the US franchising model, don’t work.
iSold It was selling a Chain of eBay drop shops cops it?
Posted 16:28 17 Apr 2007 by Richard Maven
Filed under: E-commerce, Retail, eBay, Shopping, isoldit, drop shop ream that
didn’t stand up. The only way to make a drop shop service work is by centralised
processing,
allowing economies of scale.”
Our calls to the company's accountants to clarify the situation were not answered.
This article is the latest in the
unraveling of drop-off stores in the UK.
It appeared in AuctionBytes 4.18.07
unraveling of drop-off stores in the UK.
It appeared in AuctionBytes 4.18.07
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