Allets shuts down amid financial difficulties after TMON payment issues

Notice of Service Termination posted on the Allets website. [Image source: Allets website capture]

Allets, an online marketplace for furniture and other interior products, has abruptly ceased operations due to financial difficulties.

The shutdown follows growing distrust in small e-commerce platforms after the recent incidents involving unpaid settlements at TMON and WeMakePrice.

According to industry sources on Sunday, Allets posted a notice on its website on Friday saying, “We regret to inform you that we will be ending our service as of August 31 due to unavoidable business circumstances.”

Interstellar, the company behind Allets, was founded in 2015 and initially grew as a mobile content and advertising agency before entering the e-commerce market in 2020.

The platform aimed to be a premium curated shop for furniture but also expanded into electronics, interior accessories, household items, and fashion.

Sellers and customers on Allets have been unable to contact the shopping mall, leading around 100 people to join an open chat group for affected individuals.

“I suddenly received a message from Lotte Himart that delivery was suspended due to Allets’ shutdown,” said one consumer, who recently purchased about 2 million won ($1,500) worth of electronics from Allets. “I can’t reach the Allets customer service by phone or through KakaoTalk, and I’m very worried that I won’t be able to get a refund.”

In an internal email shared by affected customers, Interstellar’s CEO explained to employees, “Just 2-3 days ago, I believed we could somehow persevere through the difficulties triggered by the TMON and WeMakePrice situations.”

“However, when the final investment we were negotiating fell through on August 15, I realized it was no longer feasible to continue operating the company,” the chief said.

Customers who were informed of delivery cancellations after placing orders are now demanding swift refunds.