In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides expert insight on the situation at ABC Carpet & Home.
Article Link: https://nypost.com/2021/12/19/abc-carpet-customers-foot-stomping-mad-about-undelivered-goods/
Summary
ABC Carpet & Home, a high-end retailer in Manhattan, is facing customer outrage over undelivered furniture and carpets despite taking full payments and deposits. The company, which was bought out of bankruptcy in October by a consortium, has been accused of poor communication and removing contact information from its website. Customers have reported multiple delivery delays and unfulfilled orders, some of which were paid for before the company’s bankruptcy. The landlord of ABC’s flagship store is also pressuring the retailer to pay overdue rent or vacate. Amidst these issues, ABC Carpet’s spokesperson claims the new owners are working to address customer concerns and blames pandemic-related supply chain delays for the problems.
- ABC Carpet & Home customers are upset over undelivered orders, some dating back a year, despite making full payments.
- The retailer’s landlord is seeking legal action to address overdue rent, adding to the company’s woes.
- Bankruptcy expert Adam Stein-Sapir comments on the possibility of the flagship store’s space being prepared for a new tenant.
Q&A
What should customers do if they have undelivered orders from a retailer that has filed for bankruptcy?
Customers should first attempt to resolve the issue directly with the retailer. If that fails, they can contact their credit card company to dispute the charge and potentially get a refund. It’s also advisable to stay informed about the bankruptcy proceedings, as they may be entitled to file a claim for their losses. For more detailed guidance, they can visit Pioneer Funding LLC’s guide on customer actions during a retailer’s bankruptcy.
How does a retailer’s bankruptcy affect its ability to fulfill pre-bankruptcy orders?
A retailer’s bankruptcy can significantly disrupt its operations, including the fulfillment of pre-bankruptcy orders. The company may lack the financial resources to produce or ship orders, and the bankruptcy process can complicate the prioritization of obligations. Customers with pre-bankruptcy orders become unsecured creditors and may receive little to no compensation for their claims.
What are the implications for a retailer’s lease agreements during bankruptcy?
During bankruptcy, a retailer may seek to renegotiate lease terms or reject leases altogether as part of its restructuring efforts. Landlords can take legal action to recover unpaid rent or to evict the tenant if the retailer fails to meet its lease obligations. The outcome can affect the retailer’s physical presence and operational capacity. For more information on how bankruptcy affects lease agreements, interested parties can refer to Pioneer Funding LLC’s bankruptcy overview.
