Apparently one of the companies not getting paid from the collapse is the one that runs their warehouses. The company hasn't taken too kindly to this and has stopped processing orders at the warehouse, resulting in no stock being sent to stores, online customers having to get refunds and the website itself being shut down to prevent new orders.
I get they have no obligation to pay, and that it was a previous regime that ran up that debt, but you'd think they'd at least cover the payments to people they need to run the basics of the business.
Yeah I read that. The problem is if the company wasn't saved, which was the other option, they'd not only not be paid but not have the future business the new HofF can offer.
do you think people will want to do business with them now, especially the existing higher end brands they have there?
Well plenty of businesses are saved from administration, with previous suppliers losing out, and continue to do business with those suppliers.
The thing is the business that has emerged from administration is effectively a new business. The previous suppliers have the choice of not doing business with a new supplier who could bring in a lot of revenue for them, or they can cut all ties. The latter doesn't seem like an effective business decision and rather one of cutting your nose off to spite your face, which isn't something well run businesses do.