Buy eCommerce business is going to be in receivership, and its stock price is expected to decline further after the company announced a settlement with a consumer advocacy group.
The company says it will work to reduce the impact of the settlement and avoid a repeat of the situation last year.
A spokesperson for the company says the company is working to “avoid another unfortunate and unnecessary setback to the growth of ecommerce in Canada.”
The spokesperson says it is “deeply sorry for any pain that the settlement has caused.”
“We have been working diligently to work through this with the consumer advocacy organization,” the spokesperson said.
“We hope this can help us move forward.”
The company has been in receiverships since March 1.
The group has said that it wants to recover the $6 million that the company owes to customers and consumers.
It says the settlement gives the company an additional $4 million and will allow it to refinance its debt.
Buy eCom, which has offices in the Toronto area and is based in Vancouver, said it is a Canadian business and will operate in Canada, but will not be based in the United States.
The settlement will be implemented “to reduce the cost of the transaction, avoid a reoccurrence, and allow Buy eBusiness to move forward,” the company said in a statement.
It also said it will seek additional financing to cover costs, such as hiring additional staff.
The Canadian Competition Bureau says that in the first three months of 2017, Buy eCo-operative was in receivers’ control for an average of $9,988.07, or about 0.4 per cent of its revenue.
The watchdog said in its report that the payments were due from the beginning of January 2017 until the end of March 2017.
It said that in that time, the company received more than $1.2 million in payments from third parties.
The CBC’s Marketplace investigation has uncovered more than 50 different lawsuits, class actions and consumer lawsuits that allege Buy eShop is misleading consumers about the quality of products and services.
In one class action lawsuit, consumers allege Buy ecBusiness is in the middle of “a massive deceptive practice” that is causing them to lose money.
The class action suit was filed on behalf of consumers in Ontario, Manitoba and British Columbia.
It accuses Buy eCarts of misleading consumers with misleading information about its products and charging them higher prices.
In its statement, the retailer said the settlement will not affect Buy eChess, which it also owns.
“The parties are in discussions to resolve these matters and to continue the successful operation of Buy eCustomers,” the statement said.
The complaint against Buy eMerchess was filed in the Ontario Superior Court of Justice on July 21.
The court said in the statement that the parties “will continue to work to reach an amicable resolution.”