Two online trading companies shut operations

On December 11, nearly 1,000 employees of Nhom Mua Company received a letter from the HR department informing that investors had stopped providing funds to the Company.

The financial sponsors of Nhom Mua Company are three sources in Vietnam, namely, IDG Ventures, Reabate Networks and Ru-Net, having 72.73 percent stake in Nhom Mua.

Soon after the website shutdown, groupon company Nhom Mua (www.nhommua.com) experienced another upheaval in its board of directors, with the general manager stepping down.

The letter also mentioned that Kyle Pham will leave CEO position from December 11.

Kyle Pham, who was appointed to manage the deal-of-the-day company on November 13, announced Tuesday that he has submitted a letter of resignation ‘citing personal reasons’ to the group of shareholders of the company on the same day.

Kyle Pham confirmed his resignation as CEO, as he was tired and worried about the future of the company as investors stopped funding operations and hence business activities could no longer continue.

The company employees were also asked to take a day-off on Tuesday, and await further announcement, while its headquarters in Ho Chi Minh City was temporarily closed.

Nhom Mua vouchers, however, still remain valid for use, the company asserted.

Earlier in mid-November, Nhom Mua headquarters were blockaded by the economic police, and its website became inaccessible for four days, triggering a wave of concern for customers who had already bought its vouchers.

Some restaurants and services actually rejected payments using the company vouchers, until the website resumed operations.

Nhom Mua made its debut in Vietnam in October 2010 based on the idea to carry online commercial deals through advertising. The Company’s website got about four million visitors each day.

It is known that the average revenue of Nhom Mua reached VND44 billion per month, accounting for 60 percent of market share of online business in Vietnam.

Another groupon website, www.dealsoc.vn earlier this month also stopped operations while its owner--All in One Co Ltd headquartered in Ho Chi Minh City--was shut down.

The Company was accused by its partners for not clearing payments on their product supplies as promised and delaying debt settlements.

Source SGGP, Translated by Dan

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