Stephen Tindall-backed discount shopping website www.thedeal.co.nz (The Deal) has gone into receivership.Staff at The Deal last night confirmed the company, wholly owned by online shopping company Hubsta, was placed into receivership late last week.READ A
Stephen Tindall-backed discount shopping website www.thedeal.co.nz (The Deal) has gone into receivership.
Staff at The Deal last night confirmed the company, wholly owned by online shopping company Hubsta, was placed into receivership late last week.
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However, the website is still trading and continues to offers daily specials on the New Zealand Herald website.
Mr Tindall’s investment company K One W One bought in to Hubsta in 2007 – a year after The Deal was launched as a clearing house for retailers and manufacturers to move out-of-season, damaged or surplus stock at deeply discounted prices.
The website was expected to have done well during the recession when supplier surpluses built up as consumers closed their wallets.
Mr Tindall’s investment company K One W One, which holds a 45% stake in Hubsta, provided vital funding during launch phase but the company had since sought capital from other avenues.
The Deal is managed by husband and wife founders Paul and Kelly O’Shannessey – who own almost half of Hubsta. They also own homeware goods importer and distributor Anthony Trading.
Air New Zealand chief executive Rob Fyfe’s wife Donna holds a 4% stake in Hubsta.
The National Business Review understands a number of staff working at The Deal had not been paid wages in recent weeks and laid off.
Today, six operational staff remain while receivers move in and decisions are made.
Lance Gilbertson, from Bill Ritchie, Cambridge, has been appointed as receiver.
