Corporate amnesia hits E-store

Having taken the E-store reins from Steven Spilly last month, E-store director Gerard Farley has found himself tangled in problems relating to the company's ability to fulfil orders, and questions relating to his corporate record.

E-store's long-suffering customers are continuing to cry foul play, accusing the local e-tailer of not delivering goods and defaulting on refunds, at a time when the new company director admits he doesn't know how many suppliers are on board and side-stepped questions about lines of credit being cut.

One disgruntled E-store customer, who contacted ZDNet Australia on several occasions, claims to have placed an order for blank CDs and firewire cable costing about AU$50, on April 22. By May 9, the order had not been fulfilled, and the customer had it cancelled, and claims to have been told the refund cheque would be sent out the next day.

Nearly a month later, it has yet to arrive.

New-to-the helm E-store director Gerard Farley said he's still in the process of meeting with suppliers. However, when asked how many suppliers the company had Farley stated: "I've no idea actually".

Stabbing at the question a second time, Farley said E-store probably had the bulk of suppliers it always had, "probably 18", but he still skirted around questions as to whether key suppliers had cut lines of credit.

"We're renegotiating various terms of trade," he opted to say instead. "In some instances we have got better terms than we had."

It would seem the operator's troubles have sparked a wave of collective corporate amnesia, with the company's major supplier Ingram Micro, similarly "not knowing" of their mutual arrangements.

Ingram Micro managing director Steve Rust said the activity level between the two companies had been very quiet since the new director took control.

When asked if Ingram Micro was still trading with E-store he replied: "I don't know what is happening there at the moment".

"I haven't heard anything about them since [Steve] Spilly left a couple of weeks ago," Rust said.

When asked if the distributor continued to provide them with a line of credit, Rust responded: "I simply can't tell you...I don't know".

However, E-store's Farley didn't hesitate to point out that the previous company manager had taken the e-tailer into administration.

"I'm not into blame games or anything," Farley said. "We are moving this business along in the best way we know."

"We're happy to rely on merit as a new management team," Farley added.

But he was reluctant to discuss his past ban as a securities representative. The Australian Securities and Investment Commission (ASIC) banned Farley for four years back in 1998. He described the ban as a "battle". When asked if it was over Farley said: "I'm not exactly sure...it should be over but to be frank I'm not sure".

Likewise, Farley was vague about the details of his ban. "I don't think this is relevant to what we're talking about," he added.

E-store is now 99 percent owned by US-based World Callnet. Since Farley's involvement the company has bought interests in the Internet-based proprietary technology, MailTV, and once owned a UK free ISP.

According to documents lodged with the US Securities and Exchange Commission in March 2000, MailTV and World Callnet were involved in a joint venture designed to deliver communications technolgies via the Internet.

According to Farley, the UK free ISP bit the dust in 2000. It had attempted a joint a venture with a licensed Australian company to roll out MailTV here two years ago, but the project didn't get off the ground.

MailTV was registered as a company with ASIC. The company went into liquidation in January this year.

World Callnet acquired the rights back off that company July last year and is currently looking for commercial and technology partners to roll it out.

Farley said that World Callnet has been seeking a partner in the UK for the last couple of months, but added that this had been distracted by the various issues surrounding E-store.

"E-store is something that has taken precedence in that regard," he said.

According to Farley, "E-store goes hand-in-glove with our concept of online commerce" and although there was a -big turmoil" for the first week of term of the new management team, with lost telecommunications further delaying online orders, things have "stabilised".

E-store is looking to open the doors of its North Sydney-based bricks and mortar store in about two weeks.

"The suppliers we've met and have had a response from are very supportive," Farley said. -I can't have finished this week better."

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Talkback 9 comments

    E-store has stolen $111 of min ...Anonymous -- 10/06/02

    E-store has stolen $111 of mine. They allowed me to place an order that a stock level of 48 on their website. After I had waited one week the stock level then showed 43 so I rang them and was told that the levels were wrong and that they had zero in stock and it would take a week more to deliver. I cancelled the order and have been waiting two weeks for a refund that keeps "coming soon".
    Why are they allowed to LIE and keep trading?

    I placed an order on the 30th ...Anonymous -- 10/06/02

    I placed an order on the 30th of April for a mobile phone battery. I have heard now 3 different stories as to why I have received the order. Estore then told me that the order would arrive to me late last week, still hasn't arrived.
    You have to wait on hold for around 10 minutes before speaking to a customer rep, and they don't repsond to emails.
    My advice to other zdnet folks is to buy elsewhere.

    Just to let you know I am also ...Anonymous -- 11/06/02

    Just to let you know I am also a victim of E-stores inability to fulfill orders.

    The E-Store web site advised that the products I required were "In Stock" so I ordered them, on the 28/05/2002. I am still waiting. I have been charged for the products.

    I have sent an email to e-Store help, with no response.

    I first purchased from E-Store in Febuary 2000. Their service was exceptional. I purchased in excess of $700 worth of goods between Feb 2000 and May 2000. Not any more though. Their service has gone down hill since my first purchase back in Feb 2000.

    Get off your FAT ASSES! Buy f ...Anonymous -- 11/06/02

    Get off your FAT ASSES! Buy from a REAL store - one that has tangible assets in the form of STOCK! Hell, I might build a web site offering wet dreams... and not fulfil that order too, but I'll charge your card, then go bust - and you may get 1 cent in the $ , if you're lucky!

    You would have to be an idiot ...Anonymous -- 12/06/02

    You would have to be an idiot to even think of buying anything from E-Store after the fiasco last year when they stole people's money before conveniently going into administration.

    I made the mistake of purchasi ...Anonymous -- 12/06/02

    I made the mistake of purchasing through E-store. Cut a long story short, I ordered a fitness product recieved a main board for a computer. Complained to E-store, nothing was done and no response was received. Luckily it was purchased on credit and so I contacted my Credit Card company, filled in a few forms and they have refunded the amount to my account and I have a mainboard ( don't know if I want it but will hang onto it for 90 days incase there are further developments. So basically e-store is crap, don't use them and tell all your e friends. Michelle A

    I really hope that you publish ...Anonymous -- 18/12/02

    I really hope that you publish the following as these guys don't deserve to be in business with their current practices and this needs to be published.

    The title is a mouthful but reflects my 1st and last attempt to purchase goods from EStore.

    The moral of the following story should be "Don't order from anyone who takes your money before they Dispatch the goods".
    My story is as follows; I was ignorant of others who have had similar or worse experiences with EStore.

    EStore have great prices; their system told me the goods were in stock so I placed two orders, one day apart. What they don't tell you is that the stock level on their system provided is not accurate. You see, it isn't their stock level you are looking at but their suppliers; nor, is their suppliers stock accurate. Eventually, I watched for about a month as each day or so the expected availability of my orders (no, of course they can't consolidate them) for two different items kept being moved out one, two or three days at a time. I contacted them by email and was told that they have problems with their suppliers stock level accuracy. Misleading advertising if you ask me and I told them they should remove the suppliers stock levels from their system if it isn't correct.

    There was further discussion over a 2 -3 week period and eventually, extremely frustrated, I emailed for a cancellation. I indicated that I wanted my order cancelled if they could not guarantee supply at the current system indicated availability date. They came back via email and said they expected the goods to arrive at the indicated date. I emailed asking again for a guarantee or a cancellation of the order. No reply this time at all.

    I watched the date on their system slip again and this time I searched their site and eventually found a phone number. Naturally, it is not very obvious as all contacts on the contact page are email addresses. I phoned; I complained and demanded cancellation. This time they agreed but I had to complete a form. They sent it, I completed it and nearly 2 weeks later I am still waiting for the refund. Their fine print says "between 14 and 21 days" for refunds but this is ludicrous as a credit card refund is not a difficult process and they had my funds immediately on me placing the order. I am furious that they are earning interest on my money and this should not be allowed to occur. My next stop is Dept of Fair Trading.

    The above story is a summary of events that transpired.

    P.S. I found another local e-supplier, ordered the goods and had them delivered to my door 4 days after placing the order. Now that's service! They waited and took payment on Dispatch of the goods too.

    signed,
    Very Angry E-consumer

    I wish I'd read some of these ...Anonymous -- 23/01/03

    I wish I'd read some of these comments before I placed my order!
    I too have made the foolish mistake of placing an order with Estore, I placed my order back in November and then checked the following day to see how my order was progressing only to find that there site was down, they claimed that they'd had a complete systems failure and it took them 5 days to recover (I know alarm bells should have started then). I then waited and waited for items that they indicated they had in stock but early in December I decided to cancel the order as the items I was after I wanted in time for Christmas. It is now nearly the end of January and I have been trying to contact their accounts dept. for the last 2 days but without any success and I am still $350 out of pocket.
    The moral of this story is that no matter how good their prices are do not under any circumstances be tempted to deal with this shonky outfit! I for one have learnt my lesson and it is companies like this that give online etailers a bad reputation!

    I am still waiting on E-store ...Ozzie -- 27/06/03

    I am still waiting on E-store to refund my $300, can anybody help me??

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