Channel speculation surrounding Ebuyer has intensified after the online retailer confirmed to CRN last week that it had made a number of job cuts.
The news follows the credit woes Ebuyer suffered over the summer, when credit insurer Euler Hermes was believed to have reduced Ebuyer’s cover (CRN, 17 July).
In a statement to CRN, Ebuyer said: “In recent months Ebuyer has merged several operating facilities and completed a move to new purpose-built premises in Howden. In doing this, the business has implemented a number of improved internal systems and process changes. As a result, a number of positions have become redundant following full consultation with the relevant staff.”
Ebuyer is believed to have invested £19m in its new headquarters in east Yorkshire.
Steve Kennedy, Ebuyer’s commercial director, told CRN that he was “asked to resign” a fortnight ago but he refused to give any further details.
Ebuyer confirmed that Kennedy was no longer with the business and that Cliff Cheetham, product marketing manager, now works as a consultant for Ebuyer on a self-employed basis. Meanwhile, Ebuyer chief executive Bob Armao returned to the US in late 2005, following a period in the UK on a temporary contract, according to the firm.
Stewart Hayward, commercial director of rival WStore, claimed: “There have been a lot of rumours about Ebuyer lately. In my opinion it has run an unsustainable price model. When it entered the market its goal was to take market share by price cutting everyone else.”
Jonathan Wall, marketing director at dabs.com, said: “Ebuyer seems to be proving the point that you can’t build a business on price alone.”
Another rival online retailer said that Ebuyer was no longer “the threat it was 12 months ago”.
However, Ebuyer remained bullish and issued a statement which said: “Ebuyer has adequate funding in place and sales and margins continue to meet the expectations of the business.”
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