Buy now, pay later company Laybuy placed into receivership in Australia and New Zealand

Buy now, pay later service Laybuy has been thrust into turmoil after the Australian and New Zealand arms of the company were placed into Receivership on 17 June.

Offering a zero-interest alternative to credit cards, Laybuy allows people to make purchases and pay back the sum over six weeks through automatic payments which remain interest free, as long as payments are made in time.

The Kiwi-founded company announced on its website, with purchases ceased and new sign-ups now disabled, that David Webb and Robert Campbell of Deloitte New Zealand have been appointed receivers over Laybuy Group Holdings Limited and Laybuy Holdings Limited.

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Glen Kanevsky and Jason Tracy of Deloitte Australia have also been appointed receivers over Laybuy Australia Pty Limited.

“The UK based entities and certain other entities in the Laybuy Group are not in receivership,” Laybuy announced on its website.

However, Laybuy said its services will remain unavailable until further notice.

“There might be temporary interruptions to some systems, or we might need to go offline for a short period of time,” it said.

“We appreciate the receivership of the companies will be frustrating, and the receivers are rapidly assessing the options that may be available.”

Members have been told they will no longer to be able to make a new purchase with Laybuy, however customers who took out credit with Laybuy before the collapse are still expected to make their scheduled payments.