Northern Irish firm Selazar employing dozens of people goes bust just two months after awards triumph news

The firm’s registered office is listed as central London, but it also has an office in Great Victoria Street in Belfast and most of its staff are based in Belfast.

It operated as a kind of middleman between customers who buy items online and the firms which make those items.

It worked with firms like the pet supplement outfit Bubby and Lola, and would hold stock in warehouses for “storage, packaging, and order fulfilment”.

It was part of a huge and relatively-new area of business called “third party logistics” (sometimes shortened to 3PL).

In July, it was announced the firm had won both Retail-Systems.com’s 2023 ‘Delivery Solution of the Year’ and CEO Monthly Magazine’s ‘Most Influential CEO UK (Logistics Technology)’.

Selazar was first incorporated in October 2014 (though the website EU-Startups gives its founding year as 2018).

It employed 54 people, of whom 38 worked in Belfast.

A small handful are being kept on to assist with the administration.

Selazar had three directors according to the latest information on Companies House, the UK register of firms.

They were Kevan Michael Bishonden, based in England, and Gareth Burns and Jack Williams, both based in Northern Ireland.

The records show a significant chunk of the company – somewhere between 25 and 50% of its shares – in the hands of Cayman Islands-registered outfit Petra Group Holdings Ltd.

Selazar's most recent set of accounts show it owed loans of about £4.4m, due within about the next five years.

Under "cash flows from operating activities", the accounts listed a loss of £2.6m in 2022, and loss of a £523k in 2021.

In a press release this morning, finance firm Interpath Advisory said it had taken over as administrators.

It said: “In common with a number of other companies across the e-fulfilment sector, in recent times the company had seen significant inflation across the company’s fixed cost base.

"This, coupled with the highly competitive nature of the market, had led to liquidity challenges.

“In response to mounting cashflow pressures, the directors sought to explore their options including marketing the business for sale on an accelerated business.

"However, with no solvent outcome available, the directors took the difficult decision to seek the appointment of administrators.

“Immediately following their appointment, the administrators sold the Company’s assets, including its Intellectual Property and the Selazar trading platform, to Petra Financial Technologies LLC and MPN Technologies Ltd, entities within the Petra Group associated with the incumbent lender.”

Stuart Irwin, managing director at Interpath Advisory, said: “The logistics and e-fulflment sector is currently experiencing a number of headwinds including rising costs and softening demand in the wake of fragile consumer confidence.

“Due to the cessation of trade and the sale of the assets, no further orders can or will be fulfilled by the company, its warehouse partners or the purchaser.

"Customers are therefore advised to contact our team as a matter of urgency to make arrangements for the collection of stock.”

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