Openpay announced its move to receivership, with partners from restructuring firm, McGrathNicol, appointed as receivers to control the company’s assets, operations, and trading activities.

The move comes after the company reported AUD 18.2 million (~USD 11.9 million) in net cash used in operating activities, with Openpay being voluntarily suspended from the Australian Securities Exchange (ASX) prior to its announcement of receivership.

Following the ASX announcement, customers will temporarily lose access to the Openpay platform for new purchases, but will need to pay any outstanding balances in accordance with their existing agreements.

Analyst QuickTake: The collapse follows the company’s receipt of a ~USD 72 million receivables facility in November 2022 , which failed to ease cash flow concerns alongside the shutdown of its US operations in July 2022 . The move to receivership occurred despite its record results in Q2 FY2023 .