RedRoller, provider of an eBay compatible application, filed a voluntary petition for relief under Chapter 11 last month, and accepted the resignations of Michael Tribolet, CEO, and Andrew Brooks, Principal Accounting Officer, Assistant Secretary and Treasurer of the company. The company provides on-demand, shipping comparison tools and said it would continue operations with no interruption of service.

Founder Bill Van Wyck said Friday that part of Tribolet's job had been to make sure the company was adequately funded. He said he found out about the financial situation in early August and began to actively raise money. "The problem is, with the financial meltdown that occurred in the banking industry, it made raising money that much more difficult."

When the company went public last November, it had closed on a $6 million round. "So the fact that the company ended up running out of cash and (Tribolet) had not made arrangements for financing for the business was really inexcusable on the side of the management team and the Board of Directors."

Van Wyck said the company had been moving "full steam ahead" getting contracts and subscribers. "If you asked the employees of the company, they couldn't have felt better about where we were."

They decided to put the company into reorganization rather than liquidation, he said, because investors continued to come to the table to support RedRoller. "We continue to believe in the business at hand. We fully anticipate recovering from the Chapter 11."

"I'm the single largest shareholder in the company, and I worked very hard for four years building this business, and I can tell you, I felt like I got taken out in a back alley street with a two-by-four, finding out about this. I'm picking up the pieces again as founder and as the president of the company, and the Board has put the company back in my hands as the lead officer of the company. It's amazing, because the investors and the investment community - even where we are now - continue to believe in what we are doing."

When asked about the status of the company for customers and potential customers, Van Wyck said the company continues to operate, the product is fully functioning, fully certified. He said there are releases coming forward that they are excited about, and from a business perspective, RedRoller continues to operate as normal. RedRoller is fully supporting the business, and everything is operating as usual, he said.

The move to a paid service in June makes sense and the model is correct in their eyes, Van Wyck said. "You may see changes in the way (the fees are) structured, but the company fundamentally makes sense as a software-as-a-service product."

Van Wyck said that under Chapter 11, the company receives protection from creditors and is entitled to continue to operate. Once it has a reorganization plan and financing in place - and if all goes well - the company will come out of Chapter 11 shortly.

"We're very confident we're going to pull through this," he said. "If you want my opinion, there was some serious mismanagement over the last 6 months. I'm back at the helm at the moment, and I'm doing everything I can to just pull us out of this and get back on track." He said there was no interruption in service. "Customer service is still on board, the product is still cranking, everything is full speed ahead. You have to minimize your expenses and slow down our growth, but the business has not stopped. We're fully functioning and intend to continue fully functioning."

A call to the company's customer service department by AuctionBytes on Friday confirmed that phone support continues to be available.

RedRoller Website

SEC Filing