Furniture resale platform Kaiyo is abruptly winding down operations, The City reports—and in the process, leaving a number of its sellers in the lurch. News of the closure was communicated to customers this week in an email that read: “Currently, Furnishare DBA Kaiyo is in the initial phase of doing an orderly wind down of the Company. Due to the current situation, we are not able to complete your payout at this time. In due course you will receive information on how to file a claim.”

As The City reported, users who have sold their furniture on the platform have shared complaints online in recent weeks, alleging that Kaiyo has withheld their payments. One, Sophia Harrison, says the company told her that her $172.25 payment for a bed frame sold on the platform would take seven to 10 business days to process. After that time elapsed without payment, she reached out via email to customer service—who told her that Kaiyo was “experiencing delays with cashing out” and could not provide a date for when the issue would be resolved.

Last week, Harrison discovered that she was locked out of her account, leading her to submit a complaint to the New York attorney general’s office and the state’s Consumer Protection division. According to the article, a spokesperson for the office is currently reviewing the complaints.

As Modern Retail reports, another customer, Julia Sherman, is owed roughly $800 in payments from Kaiyo following the sale of furniture from her late grandmother’s estate. She initially contacted the platform on July 24 after the company’s reimbursement window had passed and received the same form emails as Harrison before Kaiyo’s representatives stopped replying altogether by early August. Sherman has since filed a complaint with the Better Business Bureau, along with at least seven other customers since the beginning of July.

According to Modern Retail, a BBB analyst told Sherman that the company sent the bureau the following statement: “Currently, Furnishare dba Kaiyo is in the initial phase of doing an orderly wind down of the Company. We are working with professionals on this wind down plan and in due course you will receive communications on how to file a claim (Proof of Claims). Operations will continue only to the end of this month, all aspects of the business are currently being wound down systematically and formal communications will be provided.”

Kaiyo’s origins extend back to 2015, when founder Alpay Koralturk launched a furniture rental platform originally called Furnishare. After the business went through several iterations, Koralturk relaunched the company as Kaiyo in early 2019. By 2022, the New York–based company raised $36 million in a Series B funding round and used the capital to expand to the West Coast and launch a brick-and-mortar pop-up in Manhattan earlier this year.

At the time of publication, Kaiyo did not respond to BOH’s request for comment.