She had some
of her product in a store operated by a woman she’d known for 20 years. There
was no written/signed agreement between them. She did not feel the need for one
at this point.
When she
went to the store one day to see how her product was selling, she found it
closed. The sign on the window said ‘Out of Business’ and the contents,
including her stuff, were gone.
After much
investigation, she finally learned that the owner of the shop had declared bankruptcy
and skipped town. The contents of the store had been auctioned off to pay her
creditors.
The
unfortunate jewelry designer will not get her product back, nor will she likely
ever get paid for them. As you would imagine, she is angry and upset. After all, she is the
victim of theft.
Next article in the series is here.
I thought selling on consignment the goods were still owned by the maker -- i guess a good reason to have an agreement so if goods get auctioned off the ownership is clear.
ReplyDeleteThis particular situation went wrong in every possible way it could. One good take away lesson though...you must be diligent and thorough to protect your own interests.
DeleteThat is interesting Bonnie, over here in the UK, we can sell through outlets on a 'sale or return' basis, I am unsure on how that works in a situation like you mention, but I always get a receipt of my goods as well as leaving an inventory with the outlet, I have been lucky so far in that I have never lost stock, but, do have some work in a gallery that are rubbish at getting back to you, its a pain in the neck to keep ringing and emailing them :(
ReplyDelete