Mann appointed as Receiver/Manager of Pet Supplier
Originally posted on Channel News Asia
SINGAPORE: Perromart, a popular pet supplies e-retailer, has been sold to a new operator after customers lodged nearly 200 complaints with Singapore’s consumer watchdog over the last five months.
Perromart’s previous sole owner, 25 Holdings, became insolvent and was placed under receivership in March, its new receiver and manager Farooq Mann told CNA on Monday (May 29).
This means it was unable to meet its debt payments on time. Companies can take several routes to rescue the business and avoid bankruptcy, including receivership – a court-appointed tool to help creditors recover funds they are owed.
Perromart – which branded itself as Singapore’s largest online pet store – first came under fire in January when customers turned to social media to air their grievances over delayed or unfulfilled orders.
At the time, its co-founder Roy Lim told CNA the company was unable to catch up on orders and support tickets due to supply chain disruptions and manpower issues stemming from the Christmas, New Year and Chinese New Year holiday periods.
Mr Lim said these were “not excuses” and that Perromart would improve its processes and operational turnaround time, as well as “launch new services that include predictive delivery based on respective products”.
However, in March, Mr Mann was appointed receiver and manager of Perromart after it became insolvent.
It has since been sold to an operator in the same industry, but Mr Mann said he was not at liberty to disclose the buyer’s name at the moment.
“The incoming owner-operator of the business is confident that the new business will be able to provide excellent customer service to all existing and new customers,” added the managing partner of Mann & Associates PAC.
The new owner-operator intends to continue operating at Perromart’s new warehouse in Kallang. Perromart had announced in February that it was in the midst of moving there.
Mr Lim did not respond to further queries from CNA on the receivership.
CASE RECEIVED 192 COMPLAINTS
Mr Melvin Yong, president of the Consumers Association of Singapore (CASE), told CNA it received 192 consumer complaints against Perromart between Jan 1 and May 28.
In general, consumers complained that they did not receive their orders within the stipulated delivery timeframe. When consumers tried to contact Perromart via phone, email and social media, there was no response from the company, Mr Yong said.
Customers whom CNA had previously contacted also said they had tried to reach Perromart via various means, to no avail.
Some also questioned why it continued to advertise sales events and get customers to buy more when it was having issues fulfilling orders.
Mr Yong said that as of Apr 21, 13 complainants had sought assistance from CASE to negotiate on their behalf with 25 Holdings. CASE then helped these customers to obtain refunds or get their delayed orders.
However, when CASE received two new complaints on May 3 and 4, it reached out to 25 Holdings and was notified that it had been placed in receivership. The appointed receiver was in no position to make refunds, Mr Yong added.
“CASE advises consumers with outstanding disputes against Perromart to lodge a claim at the Small Claims Tribunals,” he said.
“Consumers who paid for the orders via credit card may also file a chargeback request for non-delivery of orders with their card-issuing bank if the payment was made within the last 120 days.”