Suppliers panic as their invoices are unpaid
By Harry Mottram: Anecdotally I’ve heard of one manufacturer who ‘opened up the doors’ of a factory in administration and loaded up all the machinery they had supplied (but had never received payment for) and drove off with it before the administrators could prevent them. The reason was simple – they had supplied tens of thousands of pounds of kit which they feared the administrators would sell off on the cheap to pay some of the debts of the collapsed firm. It may have been technically a break in – but who can blame them? Some companies who are about to go bust order the most expensive goods knowing full well they won’t pay for them but the liquidation sale could help pay of some their debts – such as the bank.
So you have to feel sorry for the likes of Victoria Beckham and fellow fashion houses who are demanding their ranges of clothing back from the administrators of Matchesfashion who have gone bust. According to reports in the fashion press they may receive their goods ‘in principle’ – but don’t hold your breath. Mike Ashley’s Frasers Group ran out of patience with Matches when managers failed to turn around its fortunes just three months after buying it for £52 million from Apax Partners. Customers of Matches must also be wondering if their orders for the highly expensive clothing and accessories will be delivered and whether they will lose their money if the firm is liquidated.
The Mail’s Sarah Butler and Jane Croft reported: “Specialising in luxury labels, from Gucci to Dr Martens, online and through three London stores, Matches generates most of its revenue internationally, delivering to 150 countries outside the UK. It employs 533 people at its head office and stores. Benji Dymant, joint administrator from Teneo who was appointed on Friday, said immediate redundancies had been made so that the company could continue to trade while sale discussions progressed alongside an assessment of its future structure.”
The demise of Matches has been blamed on hikes in energy and fuel prices along with interest rates forcing their wealthy customers to cut back on spending on luxury goods. For instance a pair of Victoria Beckham jeans will set you back £405 and a handbag a cool £1,250. In a fire sale currently a pair of Matches’ sandals has had the £352 price reduced to £176 – with most items at 50% off.
With millions of pounds of stock the administrators must be thinking they will be able to realise a reasonable price – as well as cover their eye-wateringly high costs. However it has been reported that in principle stock will be returned – but the administration of Matches has cause panic amongst suppliers. Victoria Beckham has demanded her range be returned, Cefinn, owned by Samantha Cameron (wife of David Cameron) is another potential casualty if her clothing aren’t returned along with a string of suppliers. And then of course there are the general public who are still able to order online from the vast selection of designer goods. Will they get their goods or their money back? In principle apparently.
+++++++++++++++++
ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com