Aussie buy now, pay later giant collapses leaving Bunnings and Kogan customers in the lurch after it lost $18million in three months
- Openpay has gone into receivership
- Buy now, pay later company suffered $18mil loss
Australian buy now, pay later company Openpay has gone under after a disastrous three months saw the company lose $18million.
The company has entered receivership, the Australian Securities Exchange confirmed on Monday.
Openpay’s collapse, the first of any BNPL service, will cause concern for customers of some of its retailers, Bunnings Warehouse, online marketplace Kogan.com, Officeworks, Spotlight and clothing store Glue.
Australian buy now, pay later company Openpay has gone under after a disastrous three months saw the company lose $18million
Its receivers from insolvency firm McGrathNicol, are yet to confirm whether these retailers will get their money back, while customers will still have to pay off their debts in installments.
Openpay’s most recent quarterly report showed it had suffered $18.2million in operating losses.
It had also failed to turn a profit since it was listed on the stock market in 2019, and its decline saw it pull its business out of the UK.
Openpay had also tried to sell its US branch as it battled financial woes.
The company had targeted customers making higher-valued transactions, including for healthcare with Bupa Dental one of its retailers.
Automotive and home renovation brands were also partners of Openpay.
More to come
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