Customer in administration. What to do with this responce..
Discussion
Hi,
A while ago I posted about a customer going into Administration (company A a large mens fashion retailer, think Blue :-) )
I supplied £1200+VAT worth of goods (music system equipment)
Invoice stated "all goods remain property of (ME)"
I had order numbers and emails saying the repairs were urgent.
Last week I spoke to the accounts dept of the new company (company B). Its the same staff, same directors, same trading address ect ect... only a different trading name.
The said they were paying some suppliers as a gesture of "Good Will" We'll see what we can do
Today I've had a response saying "If (ME) isn't a essential service tell him to contact the administrator Regards "
How can a company be allowed to pre plan going into administration (company B was setup in early 2015) just to write off debts and then decide who they are going to pay? It should be illegal, its certainly in my opinion bad practice and rude.
What if anything can be doe about this situation? Small claims? report the equipment stolen?
A while ago I posted about a customer going into Administration (company A a large mens fashion retailer, think Blue :-) )
I supplied £1200+VAT worth of goods (music system equipment)
Invoice stated "all goods remain property of (ME)"
I had order numbers and emails saying the repairs were urgent.
Last week I spoke to the accounts dept of the new company (company B). Its the same staff, same directors, same trading address ect ect... only a different trading name.
The said they were paying some suppliers as a gesture of "Good Will" We'll see what we can do
Today I've had a response saying "If (ME) isn't a essential service tell him to contact the administrator Regards "
How can a company be allowed to pre plan going into administration (company B was setup in early 2015) just to write off debts and then decide who they are going to pay? It should be illegal, its certainly in my opinion bad practice and rude.
What if anything can be doe about this situation? Small claims? report the equipment stolen?
Looks more like a pre-pack.
I wonder if any landlords refused to re-assign the leases? Bit naughty, so say the least, to impact other suppliers.
I suppose you could complain to the Insolvency Service, but thanks to the (according to PH non-existent) Government cuts it barely exists any more.
I wonder if any landlords refused to re-assign the leases? Bit naughty, so say the least, to impact other suppliers.
I suppose you could complain to the Insolvency Service, but thanks to the (according to PH non-existent) Government cuts it barely exists any more.
It's still your property as it hasn't been paid for. Co B will try to say they bought it with the fixtures and fittings. It wasn't Co A's to sell and it still belongs to you. Go get it (with some muscle if required) and send a copy of your T&C's showing "title doesn't transfer until the goods are paid for in full" to the liquidators and you never here from the liquidators again. Done it several times with shops and never had any come back.
Sounds like a pre pack Administration. Fairly common in retail/pub businesses where there are a lot of "onerous" leases.
If you have retention of title clauses in the contract to supply the goods, you should contact the Administrator with the relevant evidence, and if accepted by the Administrator, they should pass the goods back to you.
If you have retention of title clauses in the contract to supply the goods, you should contact the Administrator with the relevant evidence, and if accepted by the Administrator, they should pass the goods back to you.
Alpinestars said:
Sounds like a pre pack Administration. Fairly common in retail/pub businesses where there are a lot of "onerous" leases.
If you have retention of title clauses in the contract to supply the goods, you should contact the Administrator with the relevant evidence, and if accepted by the Administrator, they should pass the goods back to you.
Possession is 9/10ths of the law and all that - just go get your stuff if you want it and if you wont damage anything when you take it out.If you have retention of title clauses in the contract to supply the goods, you should contact the Administrator with the relevant evidence, and if accepted by the Administrator, they should pass the goods back to you.
mondeoman said:
Possession is 9/10ths of the law and all that - just go get your stuff if you want it and if you wont damage anything when you take it out.
When we do Administrations, the Administrator always checks stock for RoT and makes provision for it in the Statement of Affairs. Any Administrator worth his/her salt would do that. They may not do the same with F and F in a store, and that's when it is up to the supplier to make the Administrator aware of the RoT. I doubt I'll do further business with them and I don't think I want too after that response.
I spoke to the administrators who informed me that the directors of company A setup company B and bought all items except the stores that are loosing money. That included my equipment. I pointed out that they had no business selling my equipment as I state on all paperwork that it remains my property until paid for therefor not yours to sell.
They basically said tuff we can do this and the law allows us to get away with it.
I pointed out that this is how small businesses fail (I knew it would fall on deaf ears) and again tuff.
They said I could go and get my stock back if I can prove its mine (it marked) As we sometimes ship direct from supplier its not marked with my company name.
I think I'll have to put this down to experience. Fortunately its only £1200, not a great deal considering at one point the account was upto £7K.
Thanks to all responses, much appreciated.
I spoke to the administrators who informed me that the directors of company A setup company B and bought all items except the stores that are loosing money. That included my equipment. I pointed out that they had no business selling my equipment as I state on all paperwork that it remains my property until paid for therefor not yours to sell.
They basically said tuff we can do this and the law allows us to get away with it.
I pointed out that this is how small businesses fail (I knew it would fall on deaf ears) and again tuff.
They said I could go and get my stock back if I can prove its mine (it marked) As we sometimes ship direct from supplier its not marked with my company name.
I think I'll have to put this down to experience. Fortunately its only £1200, not a great deal considering at one point the account was upto £7K.
Thanks to all responses, much appreciated.
The tuff bit is entirely wrong. He's right in saying you'd need to identify the goods, eg serial numbers, but he's on the hook for selling anything subject to RoT. Typically in a pre pack, any RoT risk is passed on to the buyer via an indemnity to the administrator, but the primary liability remains with the Administrator.
You should send whatever you have, to the administrator, point out that he should not have sold anything subject to RoT, and threaten to report him to his regulatory body, which should be on his website.
You should send whatever you have, to the administrator, point out that he should not have sold anything subject to RoT, and threaten to report him to his regulatory body, which should be on his website.
528Sport said:
The said they were paying some suppliers as a gesture of "Good Will" We'll see what we can do
'Cos they'll need those ones again.Going bankrupt, then buying everything back at the liquidation auction for 50p minus creditors is an old trick. Shouldn't be allowed, but it is.
The only person that will look after your interests is you. The liqudators will be looking after theirs. Company B will be looking after theirs.
Be proactive, go get it and send the liqudators your t & c after you have your property back. The liqudators will not do anything other than accept the situation. Company B will not do anything as it will cost them money for any action which they will lose.
As I said in my previous post & take some muscle if you need it for show.
Be proactive, go get it and send the liqudators your t & c after you have your property back. The liqudators will not do anything other than accept the situation. Company B will not do anything as it will cost them money for any action which they will lose.
As I said in my previous post & take some muscle if you need it for show.
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