TheShoppingMatrix.com (TSM), once an award-winning local e-tailer, is on the verge of liquidation and its former CEO has allegedly started an opposition service.
The online retailer, owned by Y-Tech, has been faced with extensive financial difficulties for some time, and founder and shareholder Andro Engelbrecht resumed control of the company two months ago in a bid to save it.
"Unfortunately," says Engelbrecht, "I was too late to save TSM. Only after the previous directors had resigned and I took over as MD did the full extent of the company`s problems become apparent."
TheShoppingMatrix.com has been offline since the beginning of this month, and Engelbrecht says creditor Ster Kinekor has brought an application for liquidation.
Engelbrecht is hopeful that he will be able to offer TSM`s 1 200 shareholders shares in a new entity with a profitable future. "I feel I have a moral obligation to these people," he says. He could not provide further details at this stage.
In a letter to shareholders in which he informs them of the pending liquidation proceedings, Engelbrecht says: "Despite my best efforts to revive the liability of the ShoppingMatrix.com, I have been unable to do so and can find no reason to oppose the proposed liquidation application as I believe it will be in the best interests of creditors at this stage.
"In this regard I am, as a director of YTech Holdings, taking legal advice on the current position and future of YTech Holdings and will continue to act in the best interests of the creditors and shareholders."
Talks are also under way with a "strong and well-positioned company" to take over TSM`s name, business model and database.
Engelbrecht says TSM was a promising site when he helped establish it with the consolidation of DVD, games and electronics e-tailers in October 1999. The site had a loyal following and was named PC Format`s Best E-Tailer in 2001 and 2002.
He describes it as "disappointing" that the company has collapsed and that former CEO Wayne Smith has gone on to launch an opposition site, www.take2.co.za, which also sells DVDs, games and electronic goods.
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