The true cost of Rebl Corp collapse revealed
THE creditor's report of Rebl Corp's subsidiary, Digital Rebl, has revealed why the company collapsed owing more than $5 million.
Rebl Corp, which included Media Rebl, Digital Rebl and Business Rebl, helped businesses "create and deliver engaging videos, social media content, digital marketing solutions, and extensive business systems".
Rebl Corp closed the doors of its Nicklin Way office on February 28 and Digital Rebl and Media Rebl were put into liquidation under the care of Worrells Solvency and Forensic Accountants the next day.
A creditors report for Digital Rebl viewed by the Daily shows the company has just $19,973 in assets made up of cash in the bank.
According to a summary of assets and liabilities signed by Rebl Corp director Michael Maunder on March 1, the company's estimated deficiency was $5,349,752.
Dozens of small business from Queensland, New South Wales and Victoria are listed as known creditors, owed amounts ranging from $1732 to $13,415.
Since the closure, small business owners have expressed concerns they may be locked into long-standing contracts with finance companies signed as part of Rebl Corp's "free" social media and digital marketing package.
Rebl Corp's "free" social media package involved the company leasing its customer-relationship management software to Media Rebl's customers through a third-party leasing finance company.
When a client obtained a lease package, Rebl Corp was paid a one-off bulk payment by a finance company and then Digital Rebl would pay the monthly cost of the lease to the client.
The contracts signed by Rebl Corp's clients absolved the company of paying the monthly amount should it collapse.
Mr Maunder told liquidators reasons for the company's insolvency stemmed from finance companies "no longer supporting the business model", according to the report.
Further reasons listed were inadequate working capital, budgeting and financial management and continued trading loses.
The Australian Small Business and Family Enterprise Ombudsman is investigating the company and are encouraging those affected to make contact with its office.