Trade customer wants to return stock - effecting cashflow!! PLEASE HELP

Discussion in 'Growing and Managing a Business' started by andy121082, Nov 29, 2011.

  1. andy121082

    andy121082
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    Please can you help me I run a small sportswear business with my own brand. I m currently doing well but have come up against an obstacle. I delivered an order into a client which they ordered and they are now saying that they wont accept the goods. They have signed for it and accepted it and even have some items up for sale on there racks. They have had 5 returns so far out of £12,500 worth of stock and they are saying that they don't want to pay for the last order worth £5,000 as they say that the quality is not good enough, they are not challenging the £12,500 order they are happy to keep that but want to return the rest which they have already received £5,000. The underlying problem is that they have never sold sportswear before and did not have any running figures so I think they have over ordered because it is not selling as fast as they thought, so they are trying to return the last delivery, as a new company I have to look at the importance of my cash flow and this is vital that I get paid by them in order for my business to progress. Have they the right to return this or now they have accepted it should they pay for it, they have said they will take me legal over it if i don't collect the boxes. I have offered to swap any returns for them with no problem. where do I stand on this
     
  2. rshughes

    rshughes
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    Sorry that you are going through this nightmare situation - it has been a few days, has it been resolved? If not, your best option is to contact a lawyer yourself who is familiar with the laws in your region. You need to know what your rights are, and what your customer's rights are as well. Generally, goods are sold under the terms and conditions of the purchase order or contract - determining rights of return, warranties, etc. - and if not explicitly stated on the purchase order then there may be laws that establish these rights (in the US, this is called the Uniform Commercial Code or UCC). However, if this customer may become an important client for future business, perhaps you may want to be on the generous side in your negotiations. Good luck!
     

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