Furniture assembler disassembles; shuts down website
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Troubled furniture assembly platform AssembleBay has thrown in the towel, today announcing the business’s immediate closure.
Not even the title of ‘the internet’s number one resource for assembling things’ could help them snag enough customers.
“The company has formed the view that the AssembleBay business model is no longer viable and, consequently, has decided to cease operating the AssembleBay business and discontinue the platform and its website with immediate effect,” they told shareholders on Monday morning.
Things have been rocky since September for the niche online marketplace, which matches people who supply assembly services with those who need flatpack furniture put together. Back then they said they would look into other “strategic acquisition opportunities”.
But it all comes down to the shareholders, and AssembleBay says if they don’t get full support they will liquidate the company’s assets and wind it up.
Last month, the company reported just $60 worth of jobs had been completed, down from $90 in September and $230 in August.
This is despite an attempt to attract customers via a digital marketing strategy of Google AdWords and SEO, which cost about $48,000 in the last four months.
“Through this campaign, the company has continued not to be successful in attracting significant traffic on its platform, or in adequately reducing costs of use acquisition to create a viable marketplace for the AssembleBay business,” they said.
“The results clearly indicate that in order to create a viable marketplace the Company must significantly increase its capital outlay.”
AssembleBay (ASX:ASY) is planning to buy its way out of trouble by buying a new “opportunity” or selling itself into one. Until then its shares, which last traded at 1.9c, will remain suspended.