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LN-CC fails to pay suppliers

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.

Readers' comments (2)

  • How can someone still be owed 30k for AW12 stock, that's disgusting, granted this is a cool store but we could all run stores like this if we didn't have to pay for stock for 12 months...I am sure the likes of Lanvin won't be accepting payment that late!!

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  • Am I the only indie that finds it incredible that some of these aspirational stores not only take up to a year to pay for stock but that suppliers let them get away with it? Most of us small to medium sized businesses wouldn't dream of acting so disrespectfully and would probably have our accounts put on hold at 60 days. It's certainly a great business model to help your cash-flow, morally it's indefensible, and whatever happened to the old-fashioned courtesy of talking to your suppliers if business is challenging and money is tight? Incredible!

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