ETO has learned that adult goods supplier Apollo Wholesale has ceased trading, blaming a combination of the current recession, high exchange rates, an intransigent landlord and a bank review which dramatically reduced its import loan and invoice discounting facilities.
“This recession hit us so hard and fast we simply couldn’t maintain operations at all,” Apollo director Simon Early told ETO. “Wholesalers rely on high volume at low margins, but without the stock and rapidly falling sales, massive exchange rate fluctuations and increased supply costs, we were unable to continue.”
Apollo was formed by Rod Thomas and Simon Early in 2002. Rod left the business in April 2007 and the company restructured last year when Sarah Orchin was appointed MD.
The company claimed to have over 4,000 customers on its database and it gained a reputation for helping start-ups into the adult market through its party planning and dropshipping options. Every year it produced a publication called Erotic Emporium, which highlighted its top 500 products, for its trade customers to distribute to their customers.
Last year Apollo announced that it had merged with Adult Group Entertainment (AGE), the owners of the Pillow Talk chain of licensed stores. However, this merger did not actually take place, resulting in Apollo experiencing cashflow difficulties which came to a head when its stock was seized by its principle creditor.