Eziba, a direct marketer that specialized in crafts made by third-world artisans, will liquidate its assets, according to the North Adams Transcript, a Massachusetts newspaper.
The catalog, retail and online marketer has been reeling since last year. During its September and October mailings, catalogs were accidentally sent to consumers that scored among the lowest, instead of the highest, propensity to buy during a database sort, according to The New York Times. The resulting revenue loss during a critical quarter was more than the company could bear.
As a result, Eziba agreed to an “assignment for the benefit of creditors” process, which is similar to a Chapter 7 bankruptcy liquidation, but cheaper, according to the North Adams Transcript.
Eziba founders Amber Chand and Richard Sabot are negotiating with potential investors for cash infusions that will allow them to re-start the business once creditors have been appeased, the Transcript reported.
The company’s assets include $650,000 in inventory, and $75,000 in accounts receivable. Its liabilities include a $200,000 tax bill and $1.7 million in obligations stemming from trade.
Separately, the Massachusetts Museum of Contemporary Art has sued Eziba for $95,420 in rent, according to The Berkshire Eagle. The suit also accuses the company of breaking a lease agreement.
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