When Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) collapsed, hundreds of businesses were blindsided. The company experienced financial losses for years yet it failed to alert its customers about its deteriorating condition. But why was this information kept secret?
How Huboo Kept Its Customers in the Dark
Fear of Losing Clients
The knowledge about financial difficulties would have caused customers to switch to other competitors.
The survival of Huboo depended on businesses continuing to use its service.
Investors Were Still Funding It
The continuous flow of investor funds enabled Huboo to keep its operations running.
The instant collapse occurred after funding dried up.
No Legal Obligation to Disclose Financial Health
The legal requirement for banks to warn customers about financial risks does not apply to fulfilment companies.
The businesses placed their trust in Huboo without understanding its unstable financial state.
The sudden administration process denied clients sufficient time to respond.
Many businesses discovered about the closure only after Huboo had ceased operations.
The company provided no time for customers to switch to different fulfilment providers before shutting down.
Should Businesses Be Required to Warn Customers Before Failing?
Should companies providing fulfilment services need to disclose their financial difficulties by law?
Businesses should they require their logistics partners to show their financial information?
Conclusion
The absence of transparency at Huboo left businesses without a place to operate and caused them financial harm. Should Huboo Tech Limited operate more openly, or will history repeat itself?
