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  1. #1
    ABW Ambassador simcat's Avatar
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    Red Envelope going belly up.
    http://valleywag.com/375985/redenvel...-of-pink-slips

    Don't know if they are still listed at PF, the sign up page is still there though.

  2. #2
    15 years and counting
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    Quote Originally Posted by simcat
    http://valleywag.com/375985/redenvel...-of-pink-slips

    Don't know if they are still listed at PF, the sign up page is still there though.
    They are still listed, still reporting sales and I'm still making comm. I'm wondering if I should take down all my offers for them. I don't want a customer ordering something and not getting it. I've not received any email from RedEnvelope.

  3. #3
    Resident Genius and Staunch Capitalist Leader's Avatar
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    If they declare bankruptcy, they won't pay and there won't be any way to make 'em. So it's probably best to at least suspend promotions until it becomes clear whether RE is going to do that or not.

  4. #4
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    I agree, it's what I'm doing. I had a look at their website and they have running some good promos. Save 25% off. Too bad.

  5. #5
    Life is Supposed to be Fun! Rexanne's Avatar
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    Arghhhhhhhh - too bad. They were a good converting merchant. :-(
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  6. #6
    Affiliate Manager PetsWarehouse.com's Avatar
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    It appears that the high prices and very expensive direct mail didn't help.

    Direct mail???


    They will likely be selling the company this week at fire sale $$ before it's value is zero.
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



  7. #7
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    That's too bad. Now I understand why they've been offering so many discounts. I hope they don't leave any customers stranded.

  8. #8
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    This one is a HUGE shocker to me. Always thought that Red Envelope as a top end well established, entrenched merchant who could not go belly up!.

    Just the name, domain, current traffic levels (per quantcast.com) are well worth the entire market cap ... If someone gets the company for cheap, without having to assume the debts (if any), it should be a great asset IMO

  9. #9
    15 years and counting
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    Today, April 18, 2008, RedEnvelope announced in a press release that they have identified a potential buyer for the company and will continue to operate the business. The planned sale is through a Chapter 11 process that will take place over the next 60 days. RedEnvelope will be receiving financing to fund the ongoing business subject to court approval, allowing them to meet all obligations going forward. The entire press release has been included below for your review.
    From this point forward, April 18, 2008, the RedEnvelope affiliate program commissions will be honored by the new entity. Past commissions earned will be subject to the bankruptcy court proceedings. We expect there will be more information forthcoming related to the sale and will provide you with updates as we receive them. We appreciate your continued loyalty to the RedEnvelope affiliate program.
    Just kiss good bye your past commissions.

  10. #10
    Life is Supposed to be Fun! Rexanne's Avatar
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    Quote Originally Posted by Zeus
    Just kiss good bye your past commissions.
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  11. #11
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    Get ready, those of us who were through the bubble bursting last will tell you, the minute you hear of a merchant going under, bail early. Even if they come out of bankruptcy, you will never get paid, or at best pennies on the dollar. I am sure more of this will be coming over the next year.

  12. #12
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    Can Performics clarify when was the last time they received payment from RedEnvelope and which months' payments are tossed up under bankruptcy now?

  13. #13
    Google Affiliate Network Rep Google Affiliate Network Moderator's Avatar
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    Hello,

    The last payment we received was for December 2007. Jan/Feb/Mar 2008 will be covered under bankruptcy.

    Thank you,

    Jamie Ross
    Senior Manager, Affiliate Customer Support

  14. #14
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by DoubleClick Performics Moderator
    Hello,

    The last payment we received was for December 2007. Jan/Feb/Mar 2008 will be covered under bankruptcy.

    Thank you,

    Jamie Ross
    Senior Manager, Affiliate Customer Support
    = will never be paid
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
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  15. #15
    15 years and counting
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    Thanks for the information. But, please tell your accounting people to don't let these stupid merchants don't pay for so long. Deactivate them after 2 months.
    Jamie, just tell us frankly what you'll say if Google or your crooked boss was not paying you three months in a row.

  16. #16
    Life is Supposed to be Fun! Rexanne's Avatar
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    Quote Originally Posted by DoubleClick Performics Moderator

    The last payment we received was for December 2007. Jan/Feb/Mar 2008 will be covered under bankruptcy.
    OUCH
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  17. #17
    Affiliate Manager guinness618's Avatar
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    Posted on InternetRetailer.com April 21, 2008


    Troubled e-retailer RedEnvelope files for bankruptcy and finds a buyer

    RedEnvelope Inc., the online and catalog gift retailer that disclosed recently it was running out of funds, has filed for bankruptcy and announced a deal to sell itself to Creative Catalogs Corp. Creative Catalogs operates Personal Creations, No. 191 in the Internet Retailer Top 500 Guide, which, like RedEnvelope, sells gifts online and through catalogs.

    As part of the deal, Creative Catalogs and investment firm Granite Creek Partners will extend $4.5 million in credit to RedEnvelope. RedEnvelope disclosed three weeks ago that no longer had sufficient funds to operate after its main creditor, Wells Fargo Retail Finance LLC, had withdrawn a line of credit.

    The deal also calls for Creative Catalogs to purchase the assets of RedEnvelope for $5.7 million, less the amount borrowed through the credit facility. The deal is subject to the approval of the U.S. Bankruptcy Court for the Northern District of California, San Francisco division, where RedEnvelope filed its bankruptcy petition Friday. The court could award RedEnvelope’s assets to a higher bidder, should one emerge.

    "We intend to use this filing to take the actions necessary to position RedEnvelope for future success,” says Phil Neri, RedEnvelope`s chief financial officer. “We want to assure our customers, our employees, our vendors and our partners that RedEnvelope is operating business as usual during this transition. We believe the sale will strengthen the company and foster a sustained turnaround for RedEnvelope. We expect to proceed quickly with the sale and the related bidding process and that the business will have a significantly improved balance sheet, greater operating flexibility and a path to profitability."

    RedEnvelope, No. 120 in the Internet Retailer Top 500 Guide, reported a net loss of $4.3 million on $45.2 million in sales for its fiscal third quarter ended Dec. 30, compared with net income of $5.3 million on sales of $57 million in the same quarter a year ago. Online sales, which account for about 78% of the company’s business, declined 21% from $44.4 million in Q3 2007 to $35.1 million in the third quarter of the current fiscal year. The company’s interim CEO, John Pound, resigned March 31.

  18. #18
    ABW Ambassador
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    Quote Originally Posted by DoubleClick Performics Moderator
    Hello,

    The last payment we received was for December 2007. Jan/Feb/Mar 2008 will be covered under bankruptcy.

    Thank you,

    Jamie Ross
    Senior Manager, Affiliate Customer Support
    Any explanation as to why Performics allowed a merchant 3+ months without payment. Is that usual?

  19. #19
    Moderator MichaelColey's Avatar
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    It's not that far from normal payment terms for most merchants on Performics (or on LinkShare, which has similar payment terms). If the merchant was required to pay Net 30, the January payment would have been due in early March. When the filed in early April, they would have only been about 30 days past that.

    I've been shifting my preferences towards networks that require merchants to maintain an escrow account. Networks like CJ, SAS, AvantLink, and Affiliate Future all pay about 20 days after the end of the month. Performics (and Linkshare) should take note. I love many other aspects of Performics, but their payment cycles are a big negative.
    Michael Coley
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  20. #20
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    I understand the Net 30 terms of Performics. I would have expected Performics to have collected at least Jan payment (if not Feb payment) before the bankruptcy filing.

    Jan payment was past due early March and Performics did not take any action on RedEnvelope (not even informed affiliates of the problem) until the Chapter 11 filing in April 3rd week

  21. #21
    Newbie Rolet's Avatar
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    Red Envelope Finds Buyer
    Well as long as the Bankruptcy court apporves, Red Envelope ahs found a buyer...

    http://www.internetretailer.com/dailyNews.asp?id=26111

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