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Speaker 1: Now the managing director of the buy now, Pay Later

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Speaker 1: service Layby I says he's heartbroken and having to put

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Speaker 1: the business into receivership. Gary Rolloff founded Layby in twenty sixteen.

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Speaker 1: You might remember it really well in the pandemic, but

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Speaker 1: then the business ran into trouble recently and all of

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Speaker 1: Gary's attempts to sell it have failed. Carolyn Young is

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Speaker 1: from Retail New Zealand and with us Now.

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Speaker 2: Hey, Carolyn, Charla, how are you doing very well?

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Speaker 1: Thank you? Did you realize they were in trouble?

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Speaker 2: No, I hadn't heard anything up until last week. Cutting

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Speaker 2: the end of last week, there was some notifications that

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Speaker 2: went out to retailers.

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Speaker 1: What went wrong?

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Speaker 2: Well, I think they've kind of outlined most of it.

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Speaker 2: You know, they are working in a retail space where

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Speaker 2: you know, we are suffering with the challenges around pressure

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Speaker 2: on the wallet, lack of consumer confidence. You know, there's

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Speaker 2: arranged competition out in the marketplace, there's some consumer fraud,

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Speaker 2: where there's issues in terms of profitability for the company,

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Speaker 2: and therefore those those things all happen impact on where

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Speaker 2: or not you can make these schemes work. Because it's

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Speaker 2: a triparthide arrangement between the consumer, the retailer, and the

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Speaker 2: buying now say later scheme provider.

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Speaker 1: Is there also just like a mood, it is something

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Speaker 1: souring for these kinds of products because to see Apple

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Speaker 1: also also shut its one down.

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Speaker 2: I think we are in a really difficult environment in

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Speaker 2: terms of retail and these are designed around retail environments.

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Speaker 2: So people just don't have the money in their wallet

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Speaker 2: and they're not prepared because you're buying on credit. It's

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Speaker 2: a higher rate than an ordinary credit card and it's

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Speaker 2: a credit transaction. So therefore, are you confident that you

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Speaker 2: will have your job in two or three months time

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Speaker 2: when you need to continue to make those payments and

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Speaker 2: complete those payments? Yes or no? And if the answer

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Speaker 2: is no, then you're probably not going to purchase the product.

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Speaker 2: So if you aren't buying ordinarily on your debit card

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Speaker 2: or f boss card or credit card, then you wouldn't

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Speaker 2: be buying through these mechanisms. And we're seeing continued low

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Speaker 2: tunes in terms of retail sales and consumer confidence. So

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Speaker 2: I think when you look at that in that sense,

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Speaker 2: just they're in the market the same as everybody else,

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Speaker 2: and they're struggling in terms of Betspace.

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Speaker 1: Yes, a really tough times. Hey Carolyn, Thank you so much,

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Speaker 1: Carolyn Young, Retail New Zealand.

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Speaker 2: For more from Hither Duplessy Alan Drive, listen live to

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Speaker 2: news talks it'd be from four pm weekdays, or follow

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Speaker 2: the podcast on iHeartRadio