New Zealand based buy now pay later firm Laybuy entered UK administration on 24 June 2024. FRP Advisory were appointed administrators of Laybuy Holdings (UK) Limited. The provider ceased trading and its checkout integration with UK streetwear retailer Footasylum was discontinued immediately. No buyer emerged for the operation or its assets. Laybuy was wound down. Its New Zealand parent faced parallel insolvency proceedings.
The failure ended a partnership that let Footasylum shoppers split purchases into interest free instalments. Laybuy had appeared as a tender at the Footasylum checkout. The exact start date for that arrangement is not recorded here, nor whether the relationship was exclusive. What is clear: when Laybuy collapsed, every UK integration vanished with it.
Laybuy’s failure surprised few who track the sector. The firm had been wrestling with rising bad debts, mounting UK regulatory pressure and an inability to raise fresh capital. The subsidiary’s administration followed its parent entering insolvency in New Zealand. FRP Advisory handled the wind down, not a sale.
The sequence leading to administration
Rapid growth, then strain
Laybuy was founded in New Zealand and expanded into the United Kingdom during a period of breakneck growth for the BNPL category. Shoppers could pay in six weekly instalments, interest free, with a small upfront amount. Revenue came from merchant fees, not consumer interest.
Debts climbed, funding dried up
That model buckled as living costs rose across the UK and Australia. Laybuy’s bad debt ratio swelled and its financial statements showed widening losses. Attempts to raise fresh equity failed. Early in 2024 the New Zealand parent appointed administrators, a move that signalled the UK subsidiary would follow.
Instant shutdown
On 24 June 2024, FRP Advisory were appointed to Laybuy Holdings (UK) Limited. Trading stopped immediately. The firm did not fulfil outstanding orders. Customers carrying balances were told to contact the administrators. Merchants, Footasylum among them, were left to manage the fallout with their own shoppers.
What happened to the Footasylum integration
Footasylum had offered Laybuy alongside credit cards, debit cards and other BNPL providers at checkout. The tie up was one of several retail integrations Laybuy had secured in the UK streetwear and fashion market.
When the firm entered administration, the option vanished from Footasylum’s site. The precise removal date is not known, but it happened as part of the general shutdown of UK operations. Footasylum did not announce a replacement instalment partner at the time.
Whether Laybuy owed outstanding sums to Footasylum, or whether the administrators recovered any debts, remains unclear. The arrangement was a standard merchant agreement, not a strategic investment or joint venture. Footasylum was one of dozens of UK retailers that had integrated Laybuy. The partnership ended because of the administration, not the reverse.
UK and New Zealand operations both wound down
Linked failures
Laybuy’s UK administration was not isolated. The New Zealand parent had already entered insolvency proceedings. The UK subsidiary depended on funding and support from that parent. When the parent collapsed, the UK entity could not continue.
No buyer, no assets sold
FRP Advisory’s role was to wind down the UK entity, realise any remaining assets and distribute proceeds to creditors. No one acquired the operation as a going concern. The customer book, technology platform and merchant relationships went unsold. Neither the brand nor the intellectual property found a buyer.
The administrators published a notice confirming Laybuy Holdings (UK) Limited had ceased trading and all services had terminated. Creditors were invited to submit claims. By March 2025 the process had concluded and the entity had been dissolved.
No going concern sale and no buyer for the assets
The total lack of a going concern sale sets Laybuy’s case apart from other BNPL collapses where someone picked up pieces. Loan book, technology, merchant contracts: nothing was taken on. The outfit simply shut.
That outcome reflected the mid 2024 BNPL market. Investor appetite for standalone instalment lenders had cooled. UK regulatory changes were squeezing margins. Laybuy’s bad debt track record was worse than some peers, and its smaller scale made it an unattractive target.
For Footasylum, losing one checkout option caused minor operational disruption. The retailer continued with other tender methods. For Laybuy’s customers and creditors, the administration was a total wipeout. As of the resolution date, the firm was wound down and dissolved. No ongoing business remains.
Key facts
- Company: Laybuy (Laybuy Holdings (UK) Limited)
- Founded: New Zealand, expanded to UK
- Administration date (UK): 24 June 2024
- Administrators: FRP Advisory
- Retail partner affected: Footasylum
- Outcome: Ceased trading, wound down, no going concern sale
- Parent company: New Zealand parent also entered insolvency proceedings
Frequently asked questions
Did Laybuy stop being available on Footasylum’s website immediately after administration?
Yes. Laybuy ceased trading on 24 June 2024 and all merchant integrations, including Footasylum’s, were discontinued. The precise date the payment option was removed from the checkout is not recorded here, but it occurred as part of the general shutdown.
Was Laybuy’s business or customer book bought by another company?
No. No buyer acquired Laybuy’s assets, technology, loan book, or merchant contracts. The company was wound down and dissolved.
Did the UK administration happen before or after the New Zealand parent’s insolvency?
The New Zealand parent company entered insolvency proceedings first, which then led to the UK subsidiary’s administration on 24 June 2024.
