BNPL firm Laybuy’s search for new buyer results in Deloitte receivership
New Zealand-headquartered buy now, pay later (BNPL) firm Laybuy has entered into a receivership after its search for a new buyer fell flat.
Laybuy enters receivership with Deloitte
Included in the receivership, which came into effect on 17 June, are Laybuy Group Holdings Limited, Laybuy Holdings Limited and Laybuy Australia Pty Limited.
Often viewed as an alternative to bankruptcy, a receivership designates a receiver to manage the assets of a company typically in financial distress. The role of a receiver primarily pertains to preserving the financial interests of company creditors, with the management of asset seeking to mitigate any financial losses they might incur.
With this, David Webb and Robert Campbell of Deloitte New Zealand have been named as receivers and managers of Laybuy Group Holdings Limited and Laybuy Holdings Limited, while Glen Kanevsky and Jason Tracy of Deloitte Australia have been appointed to Laybuy Australia Pty Limited.
According to Deloitte, the receivership was made “at the request of the companies’ directors, following efforts to seek additional investment and a sale of the business and/or assets”.
“The receivers are working with the companies’ employees, merchants and other affected stakeholders to assess the financial position of the companies and ascertain the way forward,” its statement continues.
Describing the appointment of receivers as “gut wrenching”, Gary Rohloff, co-founder and managing director of Laybuy, says the company was “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,” he adds.
As stated through a notice on its website, Laybuy’s UK-based entities, along with “certain other entities” contained within the group, have not fallen subject to the receivership. Their services, however, “continue to remain unavailable until further notice”.
Laybuy was co-founded in 2016 by Rohloff, his wife Robyn and their two sons. In 2020, the company raised £80 million of debt financing, led by Victory Park Capital. The following year, it raised $27 million, via a share purchase plan to existing eligible shareholders in Australia and New Zealand, to expand to the UK.
