Influencer and perennial reality TV contestant Teddy Briggs’ business has sensationally collapsed amid a storm of controversy, with liquidators preparing to sell his prized Mercedes-Benz as part of their efforts to claw back hundreds of thousands of dollars.
EcomConnect built online stores for clients to sell and ship products using a retail method called “dropshipping”.
Dropshipping enables clients to become online retailers by engaging external manufacturers to ship items directly to the customer.
Mr Briggs marketed the business through his popular social media accounts and hundreds of thousands of followers.
Last month, Adelaide firm Oracle Insolvency Services were appointed to wind up the business, which was estimated to owe both clients and the Australian Taxation Office money.
Oracle Insolvency Services partner Yulia Petrenko told news.com.au five customers have lodged individual court actions against the company in Queensland and Victoria.
“These customers allege the produce they were sold underdelivered and they’re seeking a total of $60,000 in recompense,” she said.
“We are also aware of media reports detailing dozens of other customers who are unsatisfied with EcomConnect. We have received claims from 22 customers.”
Ms Petrenko said it was “early in our investigation” but she expected debts to run into several hundred thousand dollars with creditors including customers, suppliers and the ATO.
Oracle Insolvency Services estimate the company owes creditors $643,725.77 – including more than $185,000 to the tax office, noting Mr Briggs’ Mercedes-Benz G-Wagon would be auctioned off to recoup some debts.
A Reddit thread from earlier this year about Teddy Briggs is filled with complaints about the controversial star’s company.
“He has been trying to sell these stores for a while and I was interested so I booked a call,” one person wrote.
“After the call he made me send him $15,000.
“Now he isn’t answering my messages or texts or calls… I am desperate, I have kids who I need to feed.”
Another wrote: “Paid him $10k for his business in a box said it would be fully automated, his words ‘it’ll be turn key like I just give you the keys to a new car’… 3 months, back and forth chasing him up…The store had description on it from a totally different product. I immediately asked for a refund.”
“Same as me, $10,000 gone, and product from China … I would like to know how to get this money returned!” a third wrote.
Meanwhile, a fourth person shared they had been forced to move in with their parents and “have a huge amount of debt”.
Briggs, who grew up in Adelaide, moved to the Gold Coast after his appearance on the first season of Love Island in 2018.
Last month he appeared with friend Harry Jowsey on The Amazing Race: Celebrity Edition.
Mr Briggs was contacted for comment.
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