E-Force's consumer Web portal is still on air today, even though the company yesterday officially abandoned the business.
The writing went on the wall for E-Force's model late last month, when CEO Bill Farmer announced a $2,920,772 half-yearly loss – most of that due to one-off factors, including a complete write down of its portal establishment costs, provision for foreign exchange related shortfalls, and acquisition and restructuring costs related to the acquisition of import services Product Sourcing International.
PSI, which brought $12 million in sales to E-force in the four months following its purchase, "constitutes the great majority of E-Force revenue and operations, for now and into the future," said Farmer.
Farmer, who came from PSI when the purchase was made, said portal activities had been "significantly trimmed back and are projected to break even in the short future."
He said the portal would generate revenue through direct marketing initiatives to its 30,000 members and that "management will be monitoring this division for strict compliance with projections".
Less than a month later, the portal side of the business – which launched in March as a foray by Christchurch's Paynter Timber Group into an "online buying community", wooing members with high-profile prize draws of cars and computers – has apparently failed to meet its targets.
Staff associated with the portal business are understodd to have been made redundant.