Launched with much fanfare earlier this year, Braham Shnider's e-exchange Australian and New Zealand online marketplace for the IT channel has ceased trading as of today.
Shnider told ARN a lack of support from its parent organisations in Singapore and Ireland had forced the closure of the operation that has stagnated over the last few months.
In the six months since launching, Shnider claimed he had signed up just under 1,000 IT businesses to the exchange with over $12.8 million worth of online business generated in that time.
Shnider said his company e-exchange services Australia, had closed down leaving no debts although he did add there were a few outstanding creditors who were owed money by the Singapore operation.
"It was a closure, not a liquidation," Shnider said. "All the debts I had have been paid in full and there is nothing outstanding with the business."
Shnider said the operation had lost money for him and a few other investors that he would not name, but it was not a huge amount. He remains convinced the concept could have worked with a bit more support from the affiliated exchanges.
"We lost a little, but in the end it was close to breaking even," he said. "The Australian operation sold more than any other exchange."
"It is a disappointing situation to be in," Shnider said in a press statement. "Because we have licensed the software and do not own the source code, we are reliant on the worldwide organisation to host and partly fund the operation of the site.
"Unfortunately, our success has not been replicated in some other key international markets and I believe that this has contributed to the current situation."
Shnider said that he will now be taking a short break over Christmas, before continuing with the consulting services he has been offering of late. He even hinted at a new venture to be fired up in the New Year.
"There has been a lot of interest from potential clients on the consulting front, so I will continue pursuing that," he said. "I have received feelers from international vendors and local companies who want to better understand local channels."
Shnider said the final straw for he exchange came this week. "There have been a number of apparent breaches of contract such as non payment of overdue invoices as well as the site being unavailable for well over 2 weeks."
As a consequence of this action, Australian members will also lose access to the site. e-exchange services (Australia) Pty Ltd is currently in discussions with other organisations to find a suitable replacement service for their Australian members.
Shnider's Australian channel career started many years ago back at Hisoft before he moved onto to establish ITG's computer distribution business - a business which was then sold to Ingram Micro in April 1999. He then served as general manager of Ingram's systems and peripherals division before getting out and starting the successful consulting business and failed online exchange.