The liquidators of failed buy now, pay later firm Laybuy Group Holdings Limited have revealed new details about the company’s financial collapse, creditor claims, and the sale of its platform to Swedish payments giant Klarna.
Grant Thornton’s Stephen Keen and Malcolm Moore were appointed as joint liquidators on 12 September by order of the High Court at Auckland, following receivership proceedings initiated by Kiwibank over an $8.5 million loan.
Laybuy, founded in New Zealand in 2017 by Gary Rohloff, expanded into Australia and the United Kingdom, servicing more than 10,000 merchants and around 500,000 users.
Its business model allowed customers to make purchases in six weekly instalments, beginning with an upfront payment.
According to the liquidators’ first report, Laybuy’s directors had struggled with liquidity issues and sought new investment or a buyer for the business, but negotiations were unsuccessful. Between December 2023 and February 2024, the company was also hit by a series of fraud and cyberattacks, primarily affecting its UK operations, which further weakened its financial position.
Before entering liquidation, Deloitte receivers David Webb and Rob Campbell had sold Laybuy’s customer base and technology platform to Klarna in August 2024, retaining Rohloff to continue managing the business under its new ownership. The liquidators’ report does not mention Klarna’s involvement, although the sale formed a key part of the earlier receivership process.
At the time of liquidation, Laybuy held about $337,000 in its bank accounts. The receivers had already realised $7.6 million in customer payments and $874,000 from asset sales, including $205,000 from the sale of fixed assets and the operating platform to Klarna.
The latest report shows total outstanding creditor claims of $1.78 million, a reduction from about $15 million during the receivership period.
Kiwibank, the company’s main secured creditor, is owed $352,000 from its original $8.5 million claim, while 36 employees are owed $335,000 in unpaid wages and holiday pay. Inland Revenue, owed $70,000 at the start of receivership, has since been repaid in full.
Unsecured creditors are owed $1.45 million, with a further $332,000 in employee-related entitlements. The liquidators say it is not yet clear whether any funds will be available to pay unsecured creditors.
They also confirmed Laybuy received $740,000 through an insurance claim relating to the cyberattack, with $378,000 retained by the New Zealand business after costs and proceeds were shared with UK administrators.
The liquidators said they are continuing to investigate the company’s affairs and intercompany transactions to determine whether any further recoveries can be made.
Laybuy ceased trading in June 2024.
Grant Thornton said it has approval to consolidate future reporting for Laybuy Holdings Limited and Laybuy SPV (NZ) Limited, both of which are also in liquidation.
