Overstock.com has made a $500,000 offer through a trustee to buy bankrupt direct marketer Eziba, according to the North Adams, MA Transcript.
The online, retail and catalog company — based in North Adams at Mass MoCA — became involved in bankruptcy liquidation proceedings after three of its creditors filed suit in U.S. Bankruptcy Court in Worcester last month, seeking a total of nearly $369,000 allegedly owed to them by Eziba.
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. 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 newspaper (Direct Newsline, Jan. 25).
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