This article from The Age sheds a little more light on the situation.
These guys have been in business for many years now and moved a lot of stock. Like a few of the big sellers (perhaps many) they based their business model on preselling stock arriving from suppliers. When doing this you obviously run the risk of inability to supply if there is a supplier issue, incorrect goods arriving etc etc.
It probably also meant that their cashflow was operating the business, as if they had plenty of capital they may not need to run their business using the ‘pre sale’ method. I never saw them advertise the fact they were pre selling items, maybe they should have been more upfront if there were.
And, according to some discussion around the place, it seems that e-business supplies might have been pre selling items that hadn’t even left China.
In any case, it’s not a pleasant thing to happen to buyers who may be left out of pocket. The better news is that PayPal have come to the rescue and will apaprently reimburse customers who paid using PayPal. Not bad!