Reply #5: You lose my willingness to care right about here. . . [View All]

[Better Today]

"The problem was that all of the product that was not selling (like big sofa sets that we made) were inside the warehouse and all of the things that people were willing to buy were sitting in trailers outside. For them it was a product liquidity crises all of their liquidity (in this case access to warehouse space) was tied up in non performing assets. They had decided to start taking out product and destroying it (If they gave it away it wouldn't do any harm to them but it would depress the market further and force other smaller retailers into bancruptcy and that they would not do.) Even as we continued to ship they had no space for the product. The good assets were sitting there and pretty soon their stores would be empty of the product their customers wanted and filled with the product that no one wanted to buy now. (The point of the trip is probably obvious - it was a nice way to explain why they wouldn't be ordering any more product - that and similar cancellations meant that the factory failed)"

If they were foolish enough to buy too many bad assets and you're factory was foolish enough not to offer a variety of smaller, more desired sofas; then tough tarts, fail. That's what's supposed to happen. I sure don't want to bail you out, or IKEA. You both should have gotten your selves worked out before the whole warehouse was full and your factory was committed or capable of offering only one thing.