Briony Kennedy, founder of the ethical beauty brand Adorn Cosmetics, says she is on the verge of bankruptcy following a significant financial setback attributed to a website upgrade with Adobe. Kennedy, who established the Melbourne-based company in 2008 and saw it achieve $6 million in annual revenue at its peak, has initiated legal action against the software giant.
In 2021, Kennedy transitioned from a basic website to Adobe's Commerce Platform, agreeing to a monthly fee of $15,000. Adobe projected substantial revenue growth, estimating an increase of 34% to 94%. The platform was intended to enhance targeted marketing for Adorn's email database and its nearly 100,000 social media followers.
However, Kennedy claims the upgrade process, which she described as a "s***show," was plagued by delays and issues. What was projected to take three months stretched to nine, reportedly resulting in significant distress for her staff. She cited problems with the setup of various components and a lack of promised credentials and access, which hindered her ability to monitor progress and address problems.
Following the launch of the new website, Kennedy reported a 30% decrease in sales. She also claims to have lost over $1 million in advertising campaigns on platforms like Facebook and Instagram, as these did not effectively direct customers to the Adorn Cosmetics site. Amidst mounting costs and contractual obligations, Kennedy was compelled to reduce her workforce from 15 to four employees and sell her family home.
By the time she migrated to a new website on Shopify last year, Kennedy stated she was heavily in debt, with losses she indicated were in the millions. Mediation talks with Adobe reportedly failed, prompting her decision to pursue legal action.
Kennedy is now sharing her experience to caution other small business owners about the importance of thorough due diligence when considering online presence upgrades, advising them not to "chase the new shiny thing" if their current systems are functional. She has received renewed hope from customer support and a recent influx of new customers.
Daily Mail has contacted Adobe for comment. The incident highlights the significant risks and potential consequences associated with large-scale digital transformations for small and medium-sized businesses.