The same week it was designated one of Connecticut”™s software companies “to watch,” Stamford-based RedRoller Inc. filed for protection from creditors in a Chapter 11 financial restructuring.
Despite being recognized in the Connecticut Technology Council”™s annual Innovation Pipeline awards ceremony, RedRoller went bust after an investor named Sterling Pile claimed a senior, secured interest on the company”™s assets.
RedRoller”™s two largest unsecured creditors are DLA Piper US L.L.P. and Stamford-based NuTech Information Systems, which are owed $195,000 and $130,000 respectively.
Since March, RedRoller has been led by Michael Tribolet, who previously led Vonage America Inc., a subsidiary of the Internet telephony company Vonage Holdings Inc.
Tribolet replaced as chief executive officer RedRoller”™s founder Bill Van Wyck, a GreenwichNevada. native who started the company in 2004 and took it public the next year through a reverse merger with an online gambling company in
At year-end, RedRoller reported having 20 employees, including Van Wyck who stayed on as president, but the company”™s payroll was down to $6,000 weekly as of Sept. 28 according to court documents, along with retainers due its Bridgeport-based attorney Zeisler & Zeisler PC.
Richard Turcott, who had joined RedRoller to lead marketing from e-mail-blast vendor Constant Contact Inc., recently was named head of marketing at RatePoint Inc., an online customer feedback portal company in Needham, Mass.
RedRoller billed its service as a one-stop shipping service, allowing small business owners to compare freight options and rates for the U.S. Postal Service, FedEx and DHL; print shipping labels on site; track packages on a single site; and integrate with eBay and other software applications.
RedRoller generates shipping labels using a software service from Endicia, a Palo Alto, Calif.-based subsidiary of Newell Rubbermaid. Endicia obtains discounts from the U.S. Postal Service for labels printed on its system.
Under Van Wyck, RedRoller had offered the comparison shopping service for free, but now levies subscription fees based on the volume of shipping labels printed. The company”™s charges range from $15 monthly for up to 150 packages; to $90 for more than 1,000 in a month.
In a 2006 interview with the Fairfield County Business Journal, Van Wyck likened the service to Travelocity, a Web site that allows travelers to compare fares and room rates. Still, RedRoller was never able to sign UPS onto its service, providing a gap in its coverage; and other competitors emerged, including FreightQuote.com of Lenexa, Kan..; iShip Inc. of Bellevue, Wash., Shipping Sidekick of Aberdeen, S.D., and Shipgooder Inc. in Mississauga, Ontario.
In the second quarter, RedRoller lost $1.6 million on just $200,000 in revenue, with nearly half of its revenue coming from three undisclosed customers. RedRoller closed the quarter with $500,000 in cash.
”“ Bob Rozycki contributed to this article.
