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The ASX-listed company informed shareholders that Barry Kogan, Jonathan Henry and Rob Smith of McGrathNicol had been appointed as receivers of the business, rendering them control of all assets and operations.
Customers will no longer be able to use Openpay for new purchases, but those with outstanding balances will still need to pay the remainder of their debt.
In a quarterly update to the market in late January, Openpay told shareholders it had an active customer base of more than 347,000 users, servicing more than 4200 businesses.
That same update informed the market that the business was operating with a net operating cash flow of minus $18.2 million.
Like other BNPL businesses, Openpay required customers to pay an initial deposit on a purchase, followed by a repayment plan that latest six, 12 or 18 months.
Depending on the plan chosen, customers would also have to pay a small fortnightly fee, ranging up to $5 a fortnight.
Retailers who offered Openpay included Bunnings, Kogan, Anaconda, Officeworks, Spotlight and Beaurepaires, among others.
McGrathNicol said it will work closely with Openpay’s employees, merchants and customers to “urgently determine the appropriate strategy for the business”.
Openpay’s shares will be suspended from trading until further notice.
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