Account holders of furniture resale platform Kaiyo are complaining they cannot access their funds as the company prepares to close. Known from subway advertisements promising “second-hand furniture, premium experience,” the company is now blocking accounts – prompting sellers to file complaints with authorities.
In subway advertising, the Manhattan-based company promises “used furniture, a first-class experience.”
In late July, Sophia Harrison requested her $172.25 payout for the bed frame she sold through Kaiyo and was told the transaction would take seven to 10 business days to process. However, as the deadline passed, she contacted customer service via email and a representative who identified herself only as Celeste told her, “We are currently experiencing delays in the payout and we are unable to say at this time when the issue will be resolved.”
On Friday, she learned that she had been locked out of her Kaiyo account.
Harrison, who lives in Philadelphia, said she subsequently filed a complaint with the New York State Attorney General’s Office and the state Consumer Protection Agency.
Kaiyo, the corporate name of a company called Furnishare, did not respond to a request for comment. A spokeswoman for New York State Attorney General Letitia James’ office confirmed that the office had received complaints and was reviewing them.
Harrison took to Reddit to alert other customers of her situation, and about a dozen users from across the country began to share similar stories.
“I’m ANGRY,” wrote one customer on Reddit. “Be careful, Kaiyo owes me money since June and many others are in the same situation,” wrote another.
Customers reported receiving a sample email from the company with the following content:
“Furnishare DBA Kaiyo is currently in the initial stages of an orderly wind-down of the company. Due to the current situation, we are unable to complete your payout at this time.”
The email continued: “You will receive information on how to file a claim in due course.”
On the Internet and in its subway advertisements, the company presents itself as a sustainability-focused online marketplace for used furniture and home accessories from popular brands such as Pottery Barn and Article – with first-class convenience for buyers and sellers.
Those who have furniture to sell submit their offer to Kaiyo. If the company accepts the offer, the furniture is picked up free of charge and the customer receives a portion of the final sale price. The company expanded its operations to California in 2022 after securing $36 million in Series B funding. This summer, the company opened brick-and-mortar retail with a pop-up store in Brooklyn.
In a 2022 interview with The New York Times, Kaiyo CEO Alpay Koralturk said the company had kept more than 3.5 million pounds of furniture out of landfills since its founding in 2014. Koralturk left the company in April, according to his LinkedIn account.
