New York Digital Agency Alexander Interactive Gives Up on $1.3M Magento Website

EBay-owned Magento concludes agency's continued work on Adorama website would require an additional $1.5M, an eight-month delay, and a re-architecture of the site's technology to meet the deliverables promised at signing.

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Alexander Interactive Exposed is a community-based forum for businesses to share experiences and problems with Internet projects under construction by Alexander Interactive.

New York, NY (PRWEB) September 10, 2012

Adorama Inc., the New York-headquartered photography and electronics megastore, contracted in Fall 2010 with digital agency Alexander Interactive for a fixed-bid project: to redesign and develop the retailer’s website to meet a public launch date of May 15, 2011. On February 3, 2011, Alexander Interactive’s CEO Alex Schmelkin issued a press release stating that his company was “developing one of the largest implementations on the Magento Enterprise platform for a new client, Adorama, one of the nation's largest photo and expanding electronics retail and mail order suppliers.”

In May 2012, a year after the original proposed launch date, Adorama, with the agreement of Alexander Interactive, contacted Ebay-owned Magento to conduct an audit of the work to date. In August 2012, Magento concluded that the project as developed by Alexander Interactive would necessitate an additional investment of $1.5 million (on top of the initial $1.3 million fee), a further 8-month delay and a re-architecture of website’s technology to meet the deliverables as promised when the deal was signed.

“With permission from Alexander Interactive, we implemented the website design of the project," stated Harry Drummer, Adorama Chief Operating Officer. "However, the technological platform they delivered was unusable, so we were forced to put our in-house team to work bringing the site to fruition by upgrading our existing platform.”

Following Magento's audit of Alexander Interactive's work to date, an intellectual property/copyrights suit was filed on August 29, 2012 by Alexander Interactive vs. Adorama, Inc. in the Southern District Court of New York, case number 1:2012cv06608.

“We are disappointed in the turn of events,” says Drummer. “And were stunned when Alexander Interactive gave up on the work and halted the ecommerce project, requesting an additional $600,000-plus in fees,” continued Drummer.

Adorama is launching AIEXposed.com, an open forum for businesses to share their experiences with Alexander Interactive. The well-respected company hopes to harness the power of the Internet to bring about equitable solutions and remedies to the situation.


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