According to reports, online retailer WAE+ is under new ownership after the company went into administration. Their site is currently "undergoing maintenance"
It is understood that the business was sold in a pre pack administration to existing employees Justina Richards and Mevish Aslam who have set up JM-Limited.co.uk Ltd.
The online retailer attracted hundreds of complaints from dissatisfied customers but despite this it announced a trebling of its sales which showed stellar performance by increasing to £4.48m compared to £1.4m in the previous six months.
The retailer said the surge in business had put in on target to achieve a £9m turnover in its second year.
The firm said following record Christmas sales figures it had continued to build on its success and was now averaging over 6,500 customer orders per month.
So what happened?
We will have to wait to see the administration report but it sounds like the usual rapid growth story where the company has run out of cash trying to fulfill orders that are coming in thick and fast. Perhaps financial controls were not adequate. Either way when companies are growing fast this can be a difficult time to manage cash flow. Download our daily cashflow spreadsheet to help you avoid cashflow problems.