The collapse of Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) resulted in customers losing both their fulfillment service and their financial resources and customer base and business reputation. The concealed expenses from the collapse proved catastrophic for small businesses.
How Small Businesses Were Financially Damaged
Lost Inventory
Many companies had stock trapped in Huboo’s warehouses.
Some were never able to recover their goods.
Unfulfilled Customer Orders
The disappearance of orders resulted in customers receiving refunds and chargebacks which led to revenue loss for businesses.
The collapse resulted in businesses receiving negative reviews and causing damage to their reputation.
Emergency Fulfilment Costs
The process of changing to a new fulfillment provider during urgent situations proved costly for businesses.
Some businesses needed to pay additional fees to prevent additional service interruptions.
Time and Operational Disruptions
Businesses needed to dedicate weeks to restructure their logistics operations instead of pursuing growth opportunities.
The collapse created enduring instability which affected numerous small brand operations.
How Small Businesses Can Protect Themselves in the Future
Use multiple fulfilment providers to spread risk.
Small businesses should track financial records of their fulfillment partners to detect potential warning signs.
Establish a backup strategy to handle fulfillment system breakdowns.
Conclusion
The collapse of Huboo created a major financial crisis that affected small businesses beyond mere inconvenience. Companies need to exercise greater caution when selecting logistics partners to trust with their operations.
