The Birmingham-based e-retailer is in its third incarnation – and the phone lines are down already
The Birmingham-based online electrical retailer WAE+, which has left a trail of unhappy customers in its wake, has gone into administration. The business has been bought by two of its former staff who are now selling similar electrical products from a new website, Extak.com.
Extak, which lists one of WAE+'s key members of staff as a director, is the third company in a line of Birmingham ventures to sell discounted electrical goods. The previous two have been some of Guardian Money's most complained-about small companies of the past few years.
Back in November 2011, we first featured the case of a reader who complained about the company in its previous incarnation – WeAreElectricals.
FF from North London had been persuaded to pay for a laptop using a bank transfer, and contacted us when the goods failed to arrive and he couldn't get through to the firm.
We eventually managed to secure him a refund, but, following publication of his story, we received a flurry of complaints from other readers citing similar experiences and terrible customer service. At one point the website, which sold computer accessories and other electrical items, was our most complained-about firm. Deliveries that never arrived and refunds that weren't processed were common complaints.
A year on, in November 2012, Money reported that those behind the site had started a new firm, complete with the same directors – Ben Slater and Darren Cresswell – and at the same address.
That firm, WAE+ (WAEplus.co.uk), was soon attracting similar complaints from frustrated customers.
Letters to our mailbox have continued, while the wider web has been awash with posts from unhappy customers. Twitter, Facebook and various forums have all been used to vent their frustration.
WAE+ used the Google shopping channel to grab shoppers searching for the best prices. It was always a little cheaper than rivals.
We have periodically warned of the pitfalls of buying from the firm. Money understands that Trading Standards in Birmingham has had a stream of complaints about WAE+ and WeAreElectricals, but has not taken any action – despite users saying the company was taking repeated orders for items it did not have in stock and could not deliver in reasonable time.
However, that all ended on 2 September when an administrator was appointed. Imogen Davidson from Baines & Ernst Corporate says WAE+ failed as a result of "increasing pressure from creditors".
She promptly sold the business and assets of WAE+ in a pre-pack deal to two employees of WAE+ – on the basis that their offer "was significantly higher than the valuation of the business assets on a break-up basis".
She told Money in a statement: "I am aware of concerns raised by members of the public in respect of the (WAE+) directors' conduct. As is the process in all administrations, I will be reviewing information from a number of sources and investigating the conduct of the directors; where relevant, information will be provided to the appropriate bodies. The pre-packaged sale achieved the best outcome for creditors of WAE+ Limited at the point of administration, and preserved a number of staff jobs."
The new company, Extak, says on its website that it is "a young and passionate e-retailer committed to becoming a loved and trusted retailer on the web by offering superior shopping experience, rapid delivery, and stellar customer service".
It goes on to claim that its telephone representatives are "continually trained by the manufacturers of the products we sell. They can answer your questions instantly".
However, this week the phone lines were initially down and then calls were passed to a voicemail that would not record a message as it was "full". The website was open for business.
We have sent email requests asking to speak to those behind the new company – and contacted known associates – without any response. Meanwhile, the Trustpilot website is already getting complaints about Extak.
• If you have an outstanding order with WAE+ it looks as though you have lost your money and will have to turn to your bank or credit card company. A spokeswoman for the administrator has told Money that WAE+ is not able to fulfil any outstanding orders, and customers should contact their credit card provider or bank for help in obtaining a refund. Those who used a credit card to buy items worth in excess of £100 are fully covered, as are those who used some debit cards.
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