SINGAPORE: Over US$198 million (S$264 million) in claims have been submitted by creditors to the liquidator of online marketplace Qoo10.
However, only US$34,650 (S$46,300) has been recovered to date, according to the minutes of a creditors’ meeting held on 17 January 2025.
Of the recovered amount, US$20,000 (S$26,700) came from 11 bank accounts held with DBS Bank.
Another US$14,150 (S$18,900) was retrieved from rental deposits held by landlords of employees, and just US$500 (S$667) was raised from the sale of office furniture and IT equipment.
Documents seen by The Straits Times show that Qoo10’s founder and CEO, Ku Young-bae, had earlier submitted a valuation of the firm’s total assets at US$685.6 million (S$915 million).
However, the liquidator, AAG Corporate Advisory, indicated that most of this value is locked in distressed or transferred assets.
These include Qoo10’s three e-commerce platforms – Tmon, WeMakePrice and Interpark Commerce – which are currently undergoing corporate restructuring in the Seoul Bankruptcy Court.
The platforms failed to pay merchants from 2024 onwards.
According to Abuthahir Abdul Gafoor of AAG Corporate Advisory, US$11.3 million (S$15 million) in trade and other receivables include debt owed by Tmon, WeMakePrice and Indian e-commerce firm Clues Network, which operates ShopClues.
Qoo10’s shares in its former logistics arm, Qxpress, with a face value of US$12.1 million (S$16 million), have also been transferred.
This occurred after three shareholders who loaned US$42 million (S$56 million) to Qoo10 exercised their rights to acquire Qxpress shares as collateral in July 2024.
A further US$18.6 million (S$24.8 million) in investments remains unverified.
The liquidator is in the process of liaising with DBS Bank to recover a fixed deposit of US$380,000 (S$507,000) and another US$715,000 (S$955,000) held by payment gateways Worldpay and PayPal.
A source close to the proceedings told The Straits Times, “The recovery of US$685.6 million is highly doubtful because Tmon, WeMakePrice and Interpark are undergoing restructuring, or the investment has already been transferred out of Qoo10 or is unaccounted for.”
Total liabilities currently far exceed recovered funds.
According to the minutes, AAG Corporate Advisory has received 322 claims from creditors.
Of these, three are preferential claims amounting to US$250,441 (S$334,426), while the remaining US$197.9 million (S$264.2 million) are unsecured.
Preferential creditors include those legally entitled to priority in repayment.
The preferential claims consist of US$155,000 (S$207,000) in unpaid goods and services tax and employee-related claims for notice pay and leave encashment.
The 319 unsecured claims include trade and customer payables, as well as intercompany loans owed to Qoo10’s related entities.
Unsecured creditors lack collateral and therefore face higher risks of non-repayment.
The liquidator stated that the validity of claims and any potential distributions will be determined “subject to availability of funds for any dividend distribution”.
Qoo10 was ordered to be wound up by Singapore’s High Court in November 2024.
The case was initiated by Korea Culture Promotion (KCP), which had sued Qoo10 for nearly 76 billion won (S$69 million) in unpaid debts.
The court later allowed 21st Century Healthcare, a firm owed S$954,115, to take over as the claimant.
A committee of inspection was established on 17 January 2025 to assist the liquidator.
Its responsibilities include appointing legal counsel, approving fees and overseeing asset recovery efforts.
Qoo10’s collapse was preceded by mounting complaints from unpaid vendors.
Cash flow issues at Tmon and WeMakePrice, which contributed to a third of Qoo10’s sales, hampered receivables collection.
Negative press and merchant withdrawals further hurt cash flow.
In response to growing customer complaints, the Monetary Authority of Singapore suspended Qoo10’s payment services in September 2024.
Singapore police are currently investigating the company for delays in payments to vendors.
By end October 2024, all staff had been laid off due to insufficient funds, according to the liquidator.
Responding to queries from creditors, Abuthahir said there is currently no definitive timeline for completing the liquidation.
“The liquidation administration is currently in progress, with efforts on gathering relevant information and realising the company’s assets,” he said.
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