U.K. Adult Distributor Apollo Wholesale Shuts Down

BRIGHTON, England — Adult distributor Apollo Wholesale has stopped trading, according to a report by European trade journal Erotic Trade Only.

Company owners say a combination of the current recession, high exchange rates, an uncooperative landlord and a bank review that substantially reduced the company's import loan and invoice discounting facilities led to the shutdown.

“This recession hit us so hard and fast we simply couldn’t maintain operations at all,” Apollo director Simon Early told ETO. “Wholesalers rely on high volume at low margins, but without the stock and rapidly falling sales, massive exchange rate fluctuations and increased supply costs, we were unable to continue.” Apollo was formed by Early and Rod Thomas in 2002. Thomas left the business in April 2007 and the company restructured last year when Sarah Orchin joined the executive ranks.

Apollo Wholesale was known for helping startups into the adult market through its party planning and dropshipping options. The company produced an annual publication called Erotic Emporium, highlighting its top 500 products, for its trade clients to distribute to their retail customers, and still claims to have more than 4,000 customers on its database.

Last year, Apollo announced plans for a merger with Adult Group Entertainment, the owners of the Pillow Talk chain of franchised stores. The merger did not actually take place, ETO reported, resulting in Apollo experiencing cashflow difficulties which were made worse when the company's stock was seized by its principal creditor.

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