- South African eCommerce retailer Snatcher has ceased all operations after entering voluntary liquidation.
- A notice on the website of the eCommerce platform reads, “Please be advised that DHD Investments T/A Snatcher Deals, has ceased all operations. Further details to be provided.”
- The founder, Dirk van Greuning informed MyBroadband that the company entered voluntary liquidation at the end of August after suffering a series of setbacks, including competition from online retailers like Shein and Temu and fraudulent activities from internal staff.
The company, known as DHD Investments T/A Snatcher Deals, has operated in South Africa for more than eight years selling low-cost and off-brand electronics from China.
Until this development, the company had reportedly sustained an annual turnover of over R25 million( $1.4 million) since 2021.
Van Greuning confirmed that competitors including Shein and Temu leveraged substantial marketing budgets and took advantage of tax loopholes to flood the South African market with highly competitive pricing.
He added that their ability to offer lower prices due to these loopholes has significantly undermined competition. “The disparity in pricing and market strategy has made it untenable for us to compete effectively, leading to unsustainable financial losses, ” he said.
Regarding the fraudulent activities, Greuning acknowledged that the breach of trust and integrity worsened the company’s financial difficulties and also disrupted its operational stability. He added that this act was the final blow to the company's already precarious financial situation, forcing them to seek liquidation.
He explained that employees were using coupon codes to make large purchases without depositing any money into the company's account. The company's system permitted customer support representatives to issue vouchers for returns if clients chose store credit instead of a refund.
In sorting through customers with outstanding orders since the website was disabled, Greuning revealed that some had already been contacted and provided with the necessary claim forms.
He further clarified that the company still holds some assets that can be liquidated to pay creditors, including its warehouse and remaining stock.
“After the auction has taken place, the liquidator will complete the administration,” he said.
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