London concept store LN-CC has moved to reassure suppliers they will be paid by the end of October as it awaits a £4m investment.
The Dalston retailer has been unable to pay a number of its stockists tens of thousands of pounds for product dating back to autumn 12.
Creative director John Skelton told Drapers the delay was down to the business awaiting its next tranche of funding from an unnamed investor.
“We are going through another investment round, which we would have expected to be completed by this time. We are three or four weeks away from this deal now,” he said.
LN-CC, which Skelton says will turn over £8m this year selling brands such as Lanvin, Rick Owens, and Givenchy, has regularly received funds from investors since its launch in 2010. Skelton expects to have paid debts by the end of October.
However, brands said the non-payment was “crippling”. One said it was owed up to £30,000 for stock at cost price delivered for autumn 12, while another said it was owed £11,000 from autumn 13.
One said: “It’s getting increasingly difficult when they place huge orders and the money is not forthcoming.”
Another added: “I understand businesses have tough times but young businesses need payments to survive. We want to get the full payment before we place any spring orders with them.”
A third said it had refused to deliver a recent order because of non-payment, and was disappointed about the lack of communication from LN-CC.
LN-CC is expected to make its first profit next year.