Interior open market ‘Allets’ announced its closure on the interim settlement date. There are concerns that, as investment in the e-commerce market has frozen following the Timon and WeMakePrice incidents, the situation of non-settlement may spread among companies with poor financial conditions.
According to the distribution industry on the 18th, Allets announced on its homepage on the 16th that it would be ending its service on August 31st due to unavoidable business circumstances. The 16th, when the notice was posted, was the interim settlement date for tenants. Since the sudden closure announcement, many tenants have complained of damages, saying that they have not received settlements from Allets. One company representative said, “Alets’ settlement cycle is up to 60 days, so most companies have not received their July settlement.”
The affected stores are also trying to find out about Interstellar CEO Park Sung-hye and other executives who run Alerts. A representative of one of the stores said, “Not only CEO Park, but also the MDs have not contacted us at all other than the notice of closure,” and “We will use methods such as asking for contact information and residence to hold them accountable.”
Allets opened in 2016, combining content and commerce. It grew mainly with premium products, and the number of monthly visitors increased to 360,000 as of June. Interstellar exceeded 15 billion won in sales last year, but posted an operating loss of 10.4 billion won. According to the 2023 audit report, the company’s unpaid balance as of the end of last year soared to 26.7 billion won, more than double the 12.6 billion won a year ago.
Interstellar is said to have ultimately decided to suspend its service after failing to secure liquidity through additional investment. It is reported that CEO Park told employees, “I thought we could overcome the difficulties caused by the Timep incident just two or three days ago, but it was impossible.”
There are also concerns that additional unsettled situations could occur among small and medium-sized e-commerce companies. This is because investor sentiment toward e-commerce companies with low financial soundness is plummeting due to the Timon and WeMakePrice incidents. Hwang Yong-sik, a professor of business administration at Sejong University, said, “The termination of the Alerts service is an example of the e-commerce liquidity crisis that has been a concern since the Timon incident,” and “As investors’ alertness has increased, it cannot be ruled out that the liquidity crisis could spread to other platform industries in addition to e-commerce in the future.”
Reporter Jeong Seo-young [email protected]
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2024-08-19 00:38:04