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Indies angered by Firetrap compensation deals

Sports Direct has angered some indies with its case-by-case compensation to Firetrap stockists, after the sportswear retailer began selling the brand’s autumn 12 collection at reduced prices online.

Indies attempting to finalise payments to Firetrap have been offered compensation of between 0% and 50% of cost price.

Stockists reacted furiously back in October after Sports Direct began selling Firetrap’s autumn 12 collection for up to 70% lower than the recommended retail price. It followed the sale of the brand to Sports Direct after it fell into administration in March 2012.

Indies have been seeking discounts on final balances to compensate for losses accumulated after they were forced to slash prices to compete with those offered by Sports Direct.

Luke Conod, managing director of Hereford young fashion store Fit, said:
“We were initially offered 10% o but we said that was in no way acceptable. We were then offered 50% off. It’s what I consider fair. In order to clear the stock I had to sell it at half the retail price.”

However, others were not so lucky.Salim Kidiya, owner of Club JJ in Plaistow, east London, said he was offered just a 15% reduction.
Raj Hardawa, buyer at Estilo, which has three stores in the West Midlands, said he had not been offered any discount. He said: “It’s wrong. We’ve been doing trade with them for seven or eight years.”

Sports Direct did not comment.

Readers' comments (2)

  • Although it is wrong, Sports Direct probably aren't entitled to give retailers anything. The smart Indies got out of Firetrap the moment the company was sold. The fact that the brand may of been doing well for them is irrelevant, you could see what was coming a mile off. The ones that actually believed Ashley will hopefully not make the same mistake again...

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  • In the absence of a retailer being able to show that Sports Direct agreed not to effectively go on sale early with Firetrap, no compensation is due. That Sports Direct is chosing to compensate some retailerssuggests that a commercial decision to do so has been taken.

    Stephen Sidkin
    Fox Williams LLP

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