Eziba, the multichannel marketer of hand-crafted items from around the world, is struggling to pay creditors and expects to announce layoffs as a result of a computer error last fall that resulted in lost catalog sales, according to published reports Friday.
The computer glitch caused North Adams, MA-based 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. As a result, sales were down for September and October and the company is now in a cash crunch.
The company is reportedly working with its creditors so it can continue to operate.
Strong sales in November and December helped minimize the seriousness of the problem, the reports said.
Eziba's board had not made a final decision regarding how to proceed last week. An announcement is expected to be made by the company this week.