Rolling up our sleeves
Fashion & Retail
A common situation that companies within the fashion and retail sector encounter, are cancelled orders. Having to deal with seasonal fashion trends, re-selling clothing can put suppliers in a disadvantageous position. This happened to our Dutch client who received a large order of clothing from an Italian customer. Once our client had delivered the goods to the debtor, they issued the invoices to be paid.
However, the debtor had cancelled several orders previously, and the debtor was therefore also requested to pay the penalties, as noted in the terms and conditions. The debtor, however, failed to pay. It was then decided to transfer the case to our experts at the Italian desk.
Our lawyers at the Italian Desk send the debtor a customised demand letter. Soon, the debtor replied, disputing the claim. According to the debtor, they owed our client an amount far less than the penalty. Instead, they requested a discount and refused to pay the penalty.
After many attempts of negotiating new payment plans and requesting the debtor to cooperate, our lawyers knew a different strategy was necessary to recover the interest and costs.
In the meantime, the debtor had submitted a partial payment for the invoices. Knowing that this was a disputed case, our lawyers carefully assessed the chances of recovering the penalties too. We knew that the chances were extremely low given the nature of the case. After discussing the possibilities with our client, we proposed that 50% of the penalties were to be paid within the following days as a last opportunity to solve the matter without court intervention. After 5 months of negotiations, the debtor eventually paid as requested.
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Although we are a debt collection law firm, we know that taking immediate legal action is not always the right way forward. That is why we always aim to solve the case without court intervention and why we make carefully calculated decisions that will guarantee you the payment that you are entitled to. If your debtor has left you in a similar situation, then contact our lawyers to find out what we can do for you.