Former Partner - Stopping me using suppliers

[geoffcapes1]

Hi,

For two years I worked with another company, they gave me a weekly 'fund' or wage to get myself going, in return for them taking half my profits.

After doing this for two years I became very successful at what I do and no longer wanted to be paid by them, nor give them 50% of what I earned.

As I no longer want to use their services they have contacted all of their suppliers, some of which I use and have earned substantial amounts of money for, and told them they should not have any dealings with me, and that they have 'ring fenced' me for two years!

This means that I cannot use these suppliers and sell their equipment. Can they do that?
Obviously I would imagine that it is down to the individual supplier, however, as my former company are much larger than me, I would imagine that the would want to stay with the larger company which gives them more business rather than 'little ole me'.

This seems very anti competitive, especially when I never had a written agreement with the company I 'worked' for.

What can I do?

 

[mhall]

What would you do if you were them?

You were happy to take their money when you needed them but now have decided that, because you are now "successful" you want to renege on the deal? ...and you are now complaining about them being anti competitive and think that THEY are in the wrong? There was a reason they invested in you two years ago and I am sure they are now regretting it.

If you had nothing in writing, neither did they which means you can prove nothing. The suppliers can supply who they like and they will make a business decision about whether they deal with you and, again, there is little you can do about it if they decide not to deal with you. Sometimes its best not to bite the hand that feeds you until you have done some proper background research.

 

[geoffcapes1]

To be honest your response is neither helpful or useful.
My former partners earned a lot of money from me for setting me up. I had earned them over 100k in 6 months. Why would I pay them 50% of what I earn when they no longer pay me?
It's very much sour grapes on their part I feel.
As for biting the hand that feeds me, more like biting the hand that was robbing me!

 

[simon field]

Ignore them then. If they won't supply you, get another supplier.

If you can't, then just do something else.

What is there to say?

 

[geoffcapes1]

I'll do that with all but two suppliers are key to my business. But I've thought of away to get round things.

However is what they're doing legal?

 

[GarethShaw]

If you had nothing in writing then there is nothing stopping you going to those suppliers. It's up to them though who they supply.

Even if you had signed a non compete clause which legally prevented you poaching suppliers or clients they would have a time limit and most are non enforceable on the cost grounds of taking action in the courts.

 

[geoffcapes1]

They've told me it's for two years. And I've not signed a non compete clause. I believe you have to be compensated for signing such a clause anyway.

I'm only concerned with the suppliers reaction. I have a hell of a lot of work lined up with a very big client who I have spent months cultivating the relationship and things are just about to happen. If I can't come up with all the equipment then that the relationship down the pan in one go.

 

[simon field]

So have you actually asked the suppliers if they'll supply you?

If you haven't signed anything with the other lot, then they can't do anything - and saying 'its for two years' doesn't mean anything.

 

[geoffcapes1]

I've spoken to one of them who advised me that the company had told them not to supply me any more. He said that he has a long standing relationship with them and wants to keep it like that. However he would still like to keep working with me.
He said he will see if things 'calm down' over the next few weeks and not mention it to them.

 

[sirearl]

Hi,

For two years I worked with another company, they gave me a weekly 'fund' or wage to get myself going, in return for them taking half my profits.

After doing this for two years I became very successful at what I do and no longer wanted to be paid by them, nor give them 50% of what I earned.

But you made an agreement.

Have you tried to negotiate a different equity share.

Would you have felt the same if things had not gone well.

Trust is the most important thing in business.

 

[geoffcapes1]

They paid me to start with. And once money came in they dictated how much they I got of it.
For example. One job I earned £25k. They only gave me 3k of it. It was at this point I realised I was effectively being held to ransom. They took all the earnings whilst only giving me just enough to survive on.
After that I went to other suppliers and just took the money that I was owed.
Now I've made a total break from them and didn't sign a TPI agreement with them they threw their toys out of the pram.