What does this mean and where do we stand?

[Lucan Unlordly]

'Please be advised we have appointed a business rescue practitioner to act on our behalf to support a plan to move forward'

Background: We placed an order for printed products from this sizeable and well known supplier to our industry and verbally requested a speedier turnaround than the quoted 10 day norm. 21 days later, still no goods, no response to emails and a phone that is answered with a message to say ' we know your waiting, please hold on to speak to one of our operatives before cutting off.

Two days ago the 'Please be advised' message appeared on their website and I'm not sure what exactly a 'rescue practitioner' is (Your thoughts welcomed?) but believe the order was taken with knowledge that supply was impossible and if not a formal insolvency can I expect a full refund?

 

[WaveJumper]

Not an expert in this area but my reading of this is they have called in a "business rescue company" if it can’t be rescued then the only option is going to be liquidation. It is possible that the company ( the legal entity carrying out the business ) can no longer exist in its current form as it has accrued debts but that the business can be saved.

This is what happens in a phoenix company and a pre pack administration. Personally as you are already doing as both are complex processes it is essential to get legal advice on the implications and insure hopefully you can secure your order or at least some of your money back, I would not be holding my breath but hope you strike lucky and hopefully those we know with more knowledge on here will be able point you in the right direction.

Best of luck my friend

 

[Lucan Unlordly]

Not an expert in this area but my reading of this is they have called in a "business rescue company" if it can’t be rescued then the only option is going to be liquidation. It is possible that the company ( the legal entity carrying out the business ) can no longer exist in its current form as it has accrued debts but that the business can be saved.

This is what happens in a phoenix company and a pre pack administration. Personally as you are already doing as both are complex processes it is essential to get legal advice on the implications and insure hopefully you can secure your order or at least some of your money back, I would not be holding my breath but hope you strike lucky and hopefully those we know with more knowledge on here will be able point you in the right direction.

Best of luck my friend

The value of the order is minimal, around £100 but the product in question is bespoke, for a specific event that takes place in a few days time. They take a couple of days to produce and comparative supplier prices are double with no alternative supplier able to get to us in time.

We think we have a way out to appease our customer at what will double or triple the cost, which we will have to swallow, and will no longer require the items in question so money back is the only option.

I note on the companies T's& C's: If COMPANY NAME fails to deliver the Goods, its liability shall be limited to the costs and expenses incurred by the Customer in obtaining replacement goods of similar description and quality in the cheapest market available, less the price of the Goods. (We've been unable to source elsewhere in time due to their confirmation of production & despatch)

'COMPANY NAME shall not be liable for any delay in delivery of the Goods that is caused by a Force Majeure Event ('Force Majeure Event means an event or circumstance beyond a party’s reasonable control.')

Is the need to seek 'business rescue' a force majeure event?

 

[HFE Signs]

Sadly we hear of this all the time in our industry, that's why you should come to us

 

[Lucan Unlordly]

Sadly we hear of this all the time in our industry, that's why you should come to us

I would do but every regular printer I know farms the product we ordered to the company I'm commenting on, or one of a similar ilk.

 

[ChrisCallaghan]

I think @WaveJumper has pretty much answered answered this already, but "business rescue practitioner" sounds like parlance for an insolvency practitioner.

My questions are why the awkward language, and if they have instructed an IP to act on their behalf, why not name them? Seems odd to me to post a message saying "I've appointed a person/firm to act on my behalf" and then not provide their name and their contact details?

 

[eteb3]

'COMPANY NAME shall not be liable for any delay in delivery of the Goods that is caused by a Force Majeure Event ('Force Majeure Event means an event or circumstance beyond a party’s reasonable control.')


Is the need to seek 'business rescue' a force majeure event?

Not in itself. The definition is given there: without a definition it means something they have no control over and no reasonably prudent businessperson could have foreseen so as to avert or mitigate it. Covid lockdown would qualify, but it's a high bar to clear.

 

[pentel]

It looks like you are unlikely to receive anything from your existing supplier, have you managed to source your items from elsewhere? If not it might be worth mentioning what the items are, there may be someone on here who can help.

 

[Lisa Thomas]

It sounds like an insolvency procedure might be on the cards. I wouldn't do any more work on the project as you are likely to not get paid from the company...

 

[HFE Signs]

I would do but every regular printer I know farms the product we ordered to the company I'm commenting on, or one of a similar ilk.

Interesting, can I ask what the product is?

 

[Lucan Unlordly]

It looks like you are unlikely to receive anything from your existing supplier, have you managed to source your items from elsewhere? If not it might be worth mentioning what the items are, there may be someone on here who can help.

Yes all sorted

 

[Lucan Unlordly]

Interesting, can I ask what the product is?

Resin domed trophy centres...

 

[HFE Signs]

Resin domed trophy centres...

You can buy kits to do these yourself, you'd just need to order the print on high tack vinyl, just a thought

 

[Lucan Unlordly]

You can buy kits to do these yourself, you'd just need to order the print on high tack vinyl, just a thought

Yes, thanks... It's a more costly and time consuming way of doing things but that's the route we've taken. UV printed roundels and peel off domes.

I started out in the same game as you - banners and signage (pre cadcut machines!)

 

[Lucan Unlordly]

UPDATE: I received a call from a senior representative of the company involved yesterday. They've set up a new company and would be sending the goods. I explained that these were not required now, that a refund was required and this was agreed. This was followed up by an email noting the contents of our conversation, but without mention of the refund. I responded with an accurate notification of our conversation.
The goods arrived today. They are of no use.
Where do we stand?

 

[IanSuth]

UPDATE: I received a call from a senior representative of the company involved yesterday. They've set up a new company and would be sending the goods. I explained that these were not required now, that a refund was required and this was agreed. This was followed up by an email noting the contents of our conversation, but without mention of the refund. I responded with an accurate notification of our conversation.
The goods arrived today. They are of no use.
Where do we stand?

Legally I think

You had a contract with Company A who were unable to fulfill that contract and so it was frustrated

You have received goods from Company B unsolicited

I suspect you have a right to reclaim monies from Company A and company B can't chase you for money but you should return their goods at their expense.

However if Company A have no money/are in some form of administration you will be joining a queue of creditors.

I have no idea your chances of getting the £ back - your best bet may be a credit against further orders with company B despite them theoretically having no requirement to do that.

 

[Lucan Unlordly]

UPDATE: Minutes before the call I took and mentioned in post #15 above I'd filled in an online 'disputed payment goods not received' form on our banks website. I don't know if it was prompted by the supplier or the bank but a refund was issued yesterday and money paid is back in our account. Still out of pocket due to additional costs but a good result in the scheme of things.

I know we have some protection when using credit cards but wasn't aware the same applied to debit cards.

 

[Kixoponev]

A "business rescue practitioner" is someone who tries to help a struggling company get back on its feet instead of going bankrupt. It sounds like the supplier is having serious trouble.

If they took your order knowing they couldn't fulfill it, that's pretty dodgy. You should definitely reach out and ask for a full refund. If they're not formally insolvent yet, there's still a chance you can get your money back. But act fast and maybe get some legal advice if needed.

 

[Lisa Thomas]

They have already resolved the problem. Please note that Bankruptcy does not apply to a UK Limited Company.