eCommerce fulfilment firm Selazar has entered administration and its assets sold as it ceases operations.
Stuart Irwin and David Pike from Interpath Advisory were appointed joint administrators to the Belfast-headquartered company on 21st September.
Selazar, which has facilities in Warwickshire, Rotherham and County Antrim, is a third-party logistics operator providing eCommerce fulfilment services.
Significant inflation across the company’s fixed cost base, coupled with the highly competitive nature of the market, has led to liquidity challenges.
Directors sought to explore a sale of the business but, with no solvent outcome available, took the decision to seek the appointment of administrators.
Immediately following their appointment, the administrators sold the company’s assets, including its Intellectual Property and the Selazar trading platform, to Petra Financial Technologies LLC and MPN Technologies Ltd, entities within the Petra Group headquartered in the Cayman Islands and associated with the incumbent lender.
The majority of the company’s 54 staff have been made redundant.
Selazar secured £20m backing from a global investment firm in 2021 and subsequently launched a South American subsidiary in Medellin, Columbia. In the year to April 30th 2022, it made a loss of £2.65m, while at that time it owed £4.4m in loans.
“The logistics and e-fulfilment sector is currently experiencing a number of headwinds including rising costs and softening demand in the wake of fragile consumer confidence,” said Irwin.
“Due to the cessation of trade and the sale of the assets, no further orders can or will be fulfilled by the company, its warehouse partners or the purchaser. Customers are therefore advised to contact our team as a matter of urgency to make arrangements for the collection of stock.”