Eziba Goes Into Hibernation

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Eziba, the multichannel marketer of handcrafted items from around the world, reportedly has suspended operations temporarily as a result of financial difficulties. But if a deal can be negotiated with creditors, it may be back in business as soon as next month.


Attempts to reach a company representative were unsuccessful yesterday.


Eziba was founded in 1999 as a source for handcrafted products from artisans worldwide. A portion of the founders' stock was pledged to improving the lives of artisans in developing countries.


The first sign of trouble for the North Adams, MA, firm came to light last week when local newspapers began reporting that Eziba was struggling to pay creditors and was expected to announce layoffs.


The financial crisis reportedly resulted from a computer error last fall that caused Eziba's fall catalogs to be mailed only to infrequent customers and not to frequent buyers. The error was not discovered in time to correct the problem and prevent the mailing, according to reports. As a result, sales were down for September and October.


An outgoing voice-mail recording for Bill Miller, formerly president/CEO, said that as of Jan. 17 he is no longer affiliated with the company. It says that the company is going through a reorganization and will relaunch in February 2005.


Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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