We’ve just received word from another penny auction forum/review site that Swoopo is currently filing for insolvency in Germany.
If that’s indeed the case, then we can’t be sure what that’s going to mean for people that are waiting for products from Swoopo, or who’ve been buying bid packs on their website. Also, this may or may not have something to do with the potential lawsuit Swoopo might have faced in the near future if they continued their operations.
Swoopo never had a great reputation on our website, but they were still a decent penny auction site to use, and they were definitely one of the bigger auction sites on the internet. If the rumors about them filing for insolvency in Germany are actually true, then this might be bad news for other penny auction sites as well.
Usually in cases of bankruptcy though, creditors are paid off first and then customers receive their money. Hopefully, if Swoopo is in fact filing for insolvency in Germany, they honor their contracts with customers and send them refunds or the products they’ve already won.
We’re still not sure what exactly this will mean for the penny auction industry as a whole, but if a website like Swoopo went bankrupt, then maybe the whole theory that these companies are raking in huge profits is a misconception.