Help: Restrictive trade practice?

[mandyballantyne]

Hi,

Sorry long rant............

Does anyone have experience of this? Can anyone help.

My partner has a retail shop and internet company and has been dealing with a supplier for approx 10 years.

There have been no issues and it has been a sucsesful range for both the shop and the supplier as the shop has been in the top ten sales wise in the UK even against the chain stores.

Now the supplier has said we are no longer supplying you. NO Expaination other than we are supplying your competitors. (2 of which are within 5 mins walk)

Now I could understand if it was one shop in every town or only chains etc but it is not.

They had signed a contract a few weeks ago agreing to hold 40% of there stock which was fine so it is a bit of a bolt from the blue.

Been in touch with OFT but that is going to be a long proccess.

Any ideas??

Thanks, Mandy

[NOG]

In Business you don't have to sell anything to anyone. If you have a shop and don't like to look of some one you don't have to trade with them.

I think you need to find a new supplier.

[mandyballantyne]

Hi NOG,

Thanks for the reply. The supplier has been dealing with us for 8 + years, bills etc paid well in time etc.

No reason to say why they are stopping reply........

This supplier is 40% of our turn over so is causing concern.

Thanks, Mandy

[smallblueplanet]

Hi Mandy, bit obvious, but have you just asked them why they don't want to supply you anymore? Perhaps another contract stipulates that? Its all about money I suppose....

[carlseawolf]

Does your contract with this company have any kind of franchise clause so you are the only supplier in the area of there goods ?

[mandyballantyne]

HI SBP,

Yes we have asked, just a change in direction we are told. They are supplying 2 other companies in the city both who under cut and give poor service and as it is a very high value item seems bad business sense.

The new boss for the supplier does have previous conections with the other 2 companies but it seems very strange business practice for the supplier to secure future sales. If we had a bad trading history or poor payments etc fare enough but that is far from the truth.

Sorry I think we are ranting because this is so unfair.

Thanks for your support as always.

Mandy