Eziba Creditors Take Action

Share this article:
Creditors have forced multichannel marketer Eziba into bankruptcy liquidation, according to a report in The Republican, a newspaper that covers western Massachusetts.

A trustee charged with selling the company's assets was named by the U.S. Bankruptcy Court on Friday, the report said. Eziba, North Adams, MA, suspended all operations last month.

The company began as a Web site, eZiba.com, in 1999, specializing in artifacts acquired from local artisans worldwide. It quickly branched into catalogs and brick-and-mortar stores and appeared to be doing well even after it had to refinance when snow collapsed the roof of a shipping warehouse.

But in January, local newspapers reported the company was in a cash crunch and that layoffs were imminent. Eziba said its difficulties began with a mistake in its fall catalog mailing, which was sent to a list of infrequent buyers instead of frequent buyers.

When Eziba suspended operations, it said it would quickly return as an online and retail business but had no plans to return to mailing catalogs. It had filed for liquidation under state law that allows creditors to be paid by an assignee who takes control of all assets.

The assignee, lawyer Joseph B. Collins of Springfield, MA, said that in December, "a series of preferential transfers" occurred at Eziba, according to The Republican. While Collins declined comment on the nature of the transfers, after learning of them he thought federal bankruptcy would better serve creditors.

Collins also said a substantial offer for the assets of Eziba has been received, according to the report in The Republican.

The creditors who forced the company into bankruptcy are catalog printer Arandell Corp., which said it is owed $230,000; media relations company Ruder Finn Inc., owed $11,155; and Clientlogic Operating Corp., owed $127,600 for customer management services.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.