[THE INVESTOR] Global social networking giant Multiply said on Nov. 10 that its offshore unit in the Philippines has filed for court receivership.
Its wholly-owned subsidiary operates the social networking portion. The company’s restructuring will be authorized by the Pasig City Regional Trial Court.
The overseas unit was established in 2006 and has photos and videos, among others. Since May 31, 2013, amid the prolonged downturn in the global social networking industry, its business has faltered. Its total capital came to 1.84 trillion won (US$1.64 billion) as of end-2017.
In Indonesia, Multiply operates the e-commerce portion.
Pasig offices’ belt-tightening measures such as downsizing and cost-cutting, coupled with liquidity support by the parent company, have so far prevented its insolvency, Multiply’s main creditor Korea Development Bank said in a statement.
The policy bank noted that the business suspension of social networking sites would have minimal impact on the company’s operations in Indonesia.
Meanwhile, Multiply's stock price in Indonesia nearly hit the price floor on Nov. 10, taking a 27.4 percent loss in closing from the previous trading day.
But it was closed on May 6, 2013, and ceased all business operations on May 31, 2013, with the official online channels for the site had been removed along with all their content, including its YouTube, Tumblr, Twitter, Facebook, and Instagram accounts, after years of financial and managerial turmoil and following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia.
“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced on April 26, 2013, on its website.
After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.
Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to the businesses of its users.
“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.
In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.
On May 31, 2013, Multiply ceased its operations and shut down entirely.
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