When uBid.com's parent company had trouble refinancing in the fall after the credit markets had tightened, third-party merchants reported they weren't being paid for sales made on the site, which collects payments from customers. Payments to merchants resumed, though sellers reported that the company never paid out all the payments due to them from that period.

A report has surfaced that uBid may again be skipping payments to its merchants; phone calls and emails to company executives were not returned on Thursday.

Enable Holdings' SEC filings reveals the company continues to struggle and reported a decline in revenue in the Certified Merchant channel of its web properties "as merchants reduced the amount of postings due to payment history and declining visitor traffic."

Visitors to uBid.com and RedTag.com decreased 27% in the second quarter year-over-year, while net revenue increased 53.3% and gross profit decreased 36%. In addition to its third-party merchants, uBid offers inventory directly on its sites, and said the decrease in the Certified Merchant channel was partially offset by an increase in the Direct channel "attributable to increased inventory levels due to the availability of inventory financing."

Enable Holdings also operates RedTag Live, which runs live liquidation sales, and Dibu Trading Company, a wholesale inventory liquidation company dedicated to B2B solutions.

The company's auditors issued a qualified opinion that raised "substantial doubt" about its ability to continue as a going concern and outlined a plan to alleviate the condition. The full second-quarter report is available on the SEC website.

AuctionBytes' report from November is available on the AuctionBytes Blog.

Update: uBid.com's parent company Enable Holdings engaged Manchester Companies to assess options to financially restructure the business and develop a path to achieve profitability. Manchester Companies will serve as its "Chief Restructuring Officer" to assist the Board of Directors and management.