What's happening at Frooition

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Because a few people have asked – and more importantly, because some of their customers have read stories and are panicking – we asked eBay shop designers Frooition just exactly what’s going on there. Are they going bust?

No, said their CEO Phillip Molloy. There’s been a management buyout of the old company by Phillip and their previous MD, Grenville Whelan. The old company was closed down by an administrator, which is how you close companies, and that’s why people are seeing notices of that company being “in administration”.

The reason for the buyout is about control: Phillip says that they wanted the freedom to invest and develop the business and the old share structure didn’t allow them to do that.

There is no suggestion that the business is anything other than profitable and doing well; any debt or liability held by the old company has been taken over by the new company, which is looking forward to expanding into the USA this year. In addition, existing customers should find the platform more stable as they’ve now moved to Amazon’s web hosting (AWS) to speed things up.

Here’s Frooition’s press release on the same subject. I hope that sets people’s minds at rest.

Disclosure: Frooition used to advertise with TameBay. They no longer do so.


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