Laybuy in receivership: Deloitte considers offers for NZ and Australia operations

Laybuy was placed in receivership on June 17. Photo / Supplied

Offers to purchase collapsed buy-now-pay-later service Laybuy are being considered, receivers say.

On June 17, the Laybuy group of companies in New Zealand and Australia was placed in receivership after directors voluntarily requested the appointment of Deloitte as receivers.

Laybuy Group Holdings and Laybuy Holdings receiver David Webb said administrators were appointed to Laybuy’s UK business on June 24 and the receivers were working closely with them.

Receivers were seeking a buyer for the group of Laybuy companies in receivership and offers received to date were being considered, he said.

When the companies first entered receivership, Laybuy’s founder and managing director, Gary Rohloff, said attempts were made to sell the business, but negotiations “fell over at the last hurdle”.

Laybuy has ceased taking on new customers and existing ones are unable to make purchases using their accounts. But they can make repayments.

Gary Rohloff said an economic downturn more severe than expected had a significant impact on the retail sector in both New Zealand and the United Kingdom. Photo / Jason Oxenham.

“The receivers have appreciated the huge level of consumer support in terms of honouring their commitments and making payments,” Webb said.

The company operated on the premise of allowing customers to buy goods and services but instead of paying upfront, they paid in six weekly, interest-free instalments, while merchants received payment immediately.

Webb said receivers were still working through determining how much Laybuy Group Holdings owed to creditors.

“Our current priority is connecting with consumers and merchants,” Webb said.

Receivers last month told merchants to expect delays in the receivers’ responses to queries due to the number of affected parties.

Webb said Laybuy had approximately 10,000 merchants and about 600,000 consumers in NZ and Australia.

How much Laybuy was owed from consumers would be released at a later date, he said.

He said a first receivers’ report would be released mid to late August.

- By John Anthony of BusinessDesk.