Millions of consumers risk losses after group-buying company announces closure
Online-focused Beecrazy to shut business across Southeast Asia, but no announcement or verification locally
Millions of customers and retailers have been left in the lurch after a major online shopping platform announced it was shutting down business in Southeast Asia, including Hong Kong.
At least five people in Hong Kong reported the matter to police yesterday, facing losses amounting to hundreds of thousands of dollars after the company allegedly failed to pay the bills before quitting.
The sudden closure was revealed in a statement issued by Ensogo, the Australian-listed parent company of the group-buying business Beecrazy. It said yesterday the management had decided to end operations in Southeast Asia and lay off staff, in a bid to save money for new investments.
“Ensogo Australia … will no longer provide financial support to its subsidiary Southeast Asian flash sales and marketplace business units,” the statement read.
Founded in 2010, Beecrazy provides discount coupons by partnering with restaurants, shops and travel agencies. It was acquired by Singapore-based Ensogo which later ran online shopping platforms covering the Lion City, Hong Kong, Malaysia, the Philippines, Indonesia and Thailand.