UK Amazon Aggregator Olsam call in receivers

Category: Operations
UK Amazon Aggregator Olsam call in receivers

Sad news to report – UK based Amazon aggregator Olsam have called in the receivers. We hear that an investor called time on the business and Andrew Tate and James Hopkirk of Kreston Reeves have been appointed to oversee the business.

Olsam are not the first and almost certainly won’t be the last Amazon Aggregator to get into financial difficulty. Just last month German based SellerX came perilously close to being auctioned off in a Berlin hotel, until at the 11th hour Blackrock become the major share holder after a debt deal was reached.

The SellerX recapitalisation agreement provided for a new, sustainable capital structure that reduces the company’s corporate debt and significantly strengthens the company’s balance sheet while improving liquidity. SellerX state that they now are in a strong position to accelerate our transition from an aggregator to a powerful House of Brands.

This was always going to be a tricky time for aggregators who around the world attracted billions in investment to finance purchases of fast scaling Amazon businesses – when interest rates rose and economies stalled the mountains of debt start to look very scary. It took teams of employees on healthy salaries to run their operations. As soon as sales slowed and income dropped servicing the debts became an impossible challenge to manage.

While the aggregator model is definitely well past it’s peak, with the winners appearing to be those that built an Amazon best selling product and walked away with handsome valuations and cash in their pockets, for those aggregators that survive into the future, it will be much more about monetising the product sets they own than hooving up every opportunity that comes their way.

Updated 8/10 with Olsam Statement below

Olsam, a leading European e-commerce platform, today announces that it has received a new investment from existing investor NorthWall Capital (“NorthWall”), a leading European investment firm, which as a result becomes the majority shareholder in the business. In addition, Olsam announces the appointment of Ben Poynter as CEO to lead the company going forward.The new investment from NorthWall, a longstanding investor in Olsam, will provide the company with a more robust capital structure that significantly reduces the company’s debt while injecting fresh capital to support the long-term growth plans of the business.Ben brings over 20 years of experience in C-suite and M&A roles with the likes of Time Out, Yopa Property and Trouva, having begun his career in investment banking at Investec in its M&A / ECM team. Ben has a strong track record of leading fundraisings, executing on mergers & acquisitions and scaling organisations, and he brings significant expertise to Olsam as the firm enters its next phase of development.

We are delighted to receive further investment from our long-term investor NorthWall and to welcome them as our new majority shareholder. With a stronger capital structure in place, Olsam is well positioned for success, and I look forward to helping the team continue to deliver on our ambitious growth plans.

– Ben Poynter, CEO, Olsam

RELATED POSTS..

Olsam-acquires-MarketFleet-aggregator

Olsam acquires MarketFleet aggregator

Olsam-acquires-former-Dragons-Den-contestants-Colapz

Olsam acquires former Dragons Den contestants Colapz

UK-based-Olsam-snaps-up-US-FBA-aggregator-Flywheel-Commerce

UK based Olsam snaps up US FBA aggregator Flywheel Commerce

Olsam-GROWING-A-BUSINESS-1

Growing a business with a purpose

Olsam

Olsam raises $165M in series A funding round

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.

Latest

Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars