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Monday, 30 September 2013

WAE+ Customers angered by new firms inability to fulfill orders

Last week we blogged that WAE+ had undergone a pre pack administration to a couple of its existing employees and that many customers had complained about not getting their orders.  Well, in a recent development the new firm  created, JM-limited.co.uk, has said that it is unable to meet or is legally required to fulfill any of the existing orders of the previous firm.    This has angered customers who are demanding action against rogue internet operators.  Advice is that you should buy with a credit card but the problem is that only purchases over £100 are covered so the protection is not as much as many believe.  With many more operators online this is becoming more and more of an issue.

The online retailer attracted hundreds of complaints from dissatisfied customers but despite this it announced a trebling of its sales which showed stellar performance by increasing to £4.48m compared to £1.4m in the previous six months.

Citizens Advice confirmed that online shoppers only have a contract when a good is dispatched, though are entitled to a refund within 30 days if it never arrives.

The firm said following record Christmas sales figures it had continued to build on its success and was now averaging over 6,500 customer orders per month.

The Sunday Telegraph did an investigation and found that amid growing fury and calls for action from shoppers, WAE+'s two directors Darren Cresswell and Ben Slater put the company into administration on September 2. The business and assets were immediately sold to two of the 14 employees at the Birmingham-based company, who paid a "significantly higher" price than expected.


So what happened?

We will have to wait to see the administration report but it sounds like the usual rapid growth story where the company has run out of cash trying to fulfill orders that are coming in thick and fast.  Perhaps financial controls were not adequate. Either way when companies are growing fast this can be a difficult time to manage cash flow.  Download our daily cashflow spreadsheet to help you avoid cashflow problems.

5 comments :

  1. Today every online love to use the online service because it is time saving and easy to use and lots of online services are running in the internet but its success depend upon its publicity and if you want to do a publicity of your online business then about the site I know that is helpful for you..
    source: Make Your Business Sellable

    ReplyDelete
  2. these crooks ought to be prosecuted not helped to be able to con people out of their money

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  3. "usual rapid growth story where the company has run out of cash trying to fulfill orders that are coming in thick and fast"

    No...the adopted tactics of WAE+! They did the same when they were "We Are Electricals"

    This is not 'overtrading', as you suggest...this is FRAUD!!!!

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  4. Before WAE+ there was "We Are Electricals". They stole large sums of money from a great many people, me included, by taking payment for goods that were never delivered. Their modus-operandi was to disguise theft as business incompetence (thus having the police treat it as a civil rather than criminal matter).

    It is perfectly clear that the directors of WAE believe they have hit upon a scheme for carrying out criminal acts with umpunity from prosecution. Let us hope that the fuss over the recent collapse will bring their activities to an end and see them where they belong - in jail for a very long time.

    In the meantime, I would advise everybody to steer clear of the new incarnation - http://www.extak.com/ - Do not buy from them, they don't have the goods; do not pay them, they won't send you anything. If you do feel tempted to deal with them, just set fire to the money instead; experience shows that it is quicker and easier all round.

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  5. Amazing. A continuing "license" for firms such as those mentioned to accrue 30+ day interest free loans. It would be a most welcome transformation if e-tail review sites and publications actually did some background research into companies with alleged "stellar performance" or "2nd fastest growing etailer in Europe" attributes.

    ReplyDelete

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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