OrderTrust stopped taking new customers Monday as inaccurate financial information and poor performance from a key product led to the demise of the e-commerce software firm, the company said in a statement.
OrderTrust characterized the losses from its Product Market Place, a system designed to hook up Web retailers with suppliers, as insurmountable.
While OrderTrust did not divulge how much money Product Market Place had lost, the company said it had discovered unreported liabilities and inaccuracies in its books that resulted in a “negative cash impact” of $10 million.
The privately held company stopped short of blaming one individual for the erroneous financial statements. However, its prepared statement seemed like an apology aimed at investors.
“Had we known the full extent of those hurdles in January, we would certainly have acted differently at the time and would have advised our key investors accordingly,” said CEO Thomas Litle, who is also a minority investor in OrderTrust.
Several of the Lowell, MA, firm's 81 employees will be retained to complete remaining client orders. The company did not say when those contracts would be completed.