Ferris Cowper was also left disappointed after trying to buy Olympic memorabilia.
He wrote on a blog: "I was stupid enough to buy an Olympic Torch at a cost of £4,300, thinking I was buying from London 2012. This outfit took my money and failed to deliver the torch after four different delivery date promises."
Another customer was told that he had not yet received an item related to Bradley Wiggins "due to his accident", after the gold medal winner was admitted to hospital following a collision with a car in November.
Jon Curleigh, a director at Innovative Sports, said: "We were overwhelmed by the success of the Games and caught off guard by the demand.
"Unfortunately some of the products didn't materialise in the way they should have. The issue is people wanting products that we just don't have. We are offering everyone affected a 100 per cent full refund. Some people don't want the refund, they want their products. I don't know what to do about that."
He denied any allegations of fraud, saying "there was absolutely no intention to deceive".
A message on the Locog auction site this morning said orders would begin to be dispatched from January 21 due to relocation of their warehouses.
A Locog spokesman said: "We are not aware of any issues regarding the memorabilia website but will contact the company concerned and ask about these claims and will look into any specific information provided to us."
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