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Failed BNPL service Laybuy sinks into liquidation, $7.6 million recovered in customer payments
BBusiness

Failed BNPL service Laybuy sinks into liquidation, $7.6 million recovered in customer payments

  • September 17, 2025

The report detailed distributions made to creditors so far by the receivers.

Kiwibank, who is a secured creditor and tipped Laybuy into receivership, is still owed $351,000 from the sum of $8.5m.

The receivers said they expected Kiwibank to be repaid in full.

Preferential employee claims of $336,000 remain outstanding. So far, $262,726 had been paid in wages and salaries.

A debt of $70,000 to Inland Revenue has been paid in full.

The receivers said $7.6m had been recovered in outstanding payments from customers via the operating platform.

Remaining overdue customer amounts have been referred to a third-party collection agency, and efforts to recoup money continue.

Receivers said more than $874,000 had been realised from the sale of the company’s assets, which includes the sale of its operating platform to Swedish payments giant Klarna last year.

The report also said proceeds from a cyber security insurance claim had been received, however, were not detailed due to this occurring outside the period of the report.

“It is expected that the secured creditor will be repaid in full and a distribution to preferential creditors may be able to be made,” the receivers said. “Once this has occurred, we will look to retire as receivers.”

In April, the Herald reported that Laybuy had relaunched in New Zealand under Klarna.

Laybuy founder and former chief executive Gary Rohloff was responsible for spearheading the relaunch as Klarna’s head of Australia and New Zealand.

Rohloff said last year he was “heartbroken” at the decision to request the appointment of receivers.

Klarna has around 111 million active customers in 26 countries, with three million transactions a day.

Laybuy had an estimated customer base of 500,000 customers in New Zealand.

Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.

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