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East Lancs bad news


Dagworth

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Sad news.

 

Moral of story = pay for nowt until it is delivered and checked correct. Edited to add - or pay with your credit card.

 

This applies to every one of us.

 

Brit15

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A bit like a current Championship football club, who, on going into administration, somehow managed to end up owning the brand new stadium that had been built for them, having actually paid very little for it.

 

The company that built it, however, went down the pan.

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In a business situation, you don't get the same protection using a credit card.

 

It is the way of the world now that most companies won't work with you until you have made some advance payment. But if you are going to pay out £18,000, you really should take care to make sure that the company you are working with is financially sound.

 

At this stage, administrators have been called in. That is not yet a liquidation and although it will doubtless cause delay, it is certainly possible that the Administrator will consider that this is a job that the company should fulfil in order for it to remain a going concern.

 

Am I the only person to be a bit confused that they were buying roof glazing from a paper manufacturer?

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This is terrible news !!!! It  disgraceful the way the business is conducted in this country there's too many greedy people who just don't give a **** about morals.

On the other side of the coin though I am very surprised that the East Lancs parted with the money before delivery. I know that sometimes companies expect money / deposes before delivery but some of the blame does fall onto the customer for not checking prior to completion of contract.

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Somewhere under this may well be the positive pr that the supplier could expect from such a highly-visible project/supply with a charity is factored into an advantageous price, but with up-front payment as part of the deal. If the figure mentioned includes VAT then this is recoverable in full, but this depends on the status of the charity in it's activities.

 

Nevertheless it's a blow to the railway in that they are left with an uncompleted canopy and have to find another supplier. But if they find one who steps in and saves the day .... pr coup! Swings and roundabouts.

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I highly doubt that a preserved railway which is as well known as the East Lancs would have been so stupid as to have not checked out a company they were working with, as has already been said the company is only in administration and not yet under liquidation so there may yet be a chance for some sort of recovery.

 

I wish the ELR good luck in there project and also hope for a good outcome for all the staff at the troubled company cos its so hard to get a job these days, I know I'm trying at the moment.

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  • 2 weeks later...

Am I the only person to be a bit confused that they were buying roof glazing from a paper manufacturer?

No you were not Joseph, more so from myself as an occasional press room buyer from our local Paperlinx branch. However one of the Rep's from that office has been fortunate enough to find her feet at another paper merchant and she popped in to our print shop today.

I asked her about the ELR doings and she imparted that signage and display was part of the operation within the group, glazing included.

 

Personally, I can't see why the ELR didn't go down the corporate deal/sponsorship route with Pilkington's or suchlike. Speak to the organ grinder-not the monkey, as it were.

(Additionally, I'm afraid within the print trade, the writing had been visible on the wall that all was not well with the company for a while, though of course none of this helps the East Lancs. in its predicament sorry to say.)

 

C6T.

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Such a pity. I would say that Robert Horne and Paperlinx would hardly have be described [before this] as the dodgy end of the market - caused quite a dent in the paper buying market - I think upwards of 30% of the paper in the UK came through the Paperlinx network. As to if it was properly run is another thing. I had also heard  recently that their terms for payment were very lax - perhaps East Lancs should have assumed 90+ days on their invoice. 

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Such a pity. I would say that Robert Horne and Paperlinx would hardly have be described [before this] as the dodgy end of the market - caused quite a dent in the paper buying market - I think upwards of 30% of the paper in the UK came through the Paperlinx network. As to if it was properly run is another thing. I had also heard recently that their terms for payment were very lax - perhaps East Lancs should have assumed 90+ days on their invoice.

Indeed, the Antalis Rep' told me the initial demise of Paperlinx saw a 40% rise in orders through their office. The customer Base was there sure enough.

 

C6T.

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  • 2 months later...

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