The Singapore High Court has ordered e-commerce company Qoo10 to be wound up due its US$54 million worth of unpaid debt.

The order, handed down earlier this month, came after South Korean gift certificate vendor Korea Culture Promotion (KCP) filed a petition in court.

According to The Strait Times, KCP alleged Singapore-based Qoo10 had defaulted on 5.8 billion won ($54 million) in payments for gift certificates.

The petition was supported by six other creditors, namely SCI Ecommerce, 21st Century Healthcare, Mister Mobile Trading and Shenzhen Lanmey Industries, which said Qoo10 owed them more than $2.8 million.

While Qoo10 disputed the claims, Justice Aidan Xu denied the adjournment request and ruled that the company was insolvent. He also allowed the appointment of Abuthahir Abdul Gafoor and Yessica Budiman from AAG Corporate Advisory as liquidators.

Qoo10’s issues began in July when two of its South Korean subsidiaries, Tmon and WeMakePrice, were reported to have failed to pay their vendors.

South Korean authorities later launched an investigation, with WeMakePrice reportedly owing nearly 500 vendors around $27.7 million. The platform attributed the problem to a payment system glitch.

In September, Qoo10 and its logistics subsidiary, Qxpress, were also investigated in Singapore following complaints from vendors about delayed payments and disruptions to deliveries.

According to DealStreetAsia, nearly US$360 million of investor-paid capital has been injected into Qoo10 since Ebay exited the business in 2018.