BBC :
If department store chain Beales goes under it will be “a disaster” for DK Bags.
The small business imports handbags from China and sells them on to customers in the UK.
One of their clients is Beales, which went into administration on Monday.
And that’s a worry for Ian Siddall – one of the owners of DK Bags – because the department store chain still owes his small, Kent-based business £25,000.
Earlier this week, Beales boss Tony Brown told the BBC that he was trying to shore up the company’s finances by closing some stores. And the administrators insist that they are in talks to sell the chain.
But since the firm was put into administration, signs have gone up at Beales stores saying: “Closing down, everything must go.”
Meanwhile, the company’s online shop has been replaced with a notice advertising the closing down sale, which is happening at each of its 23 shops.
But Mr Siddall thinks that is unfair because he will be among those at the back of the queue to get paid if the firm does go into liquidation.
“They will still be selling the bags now but we won’t get any money,” he said.
That’s because other creditors such as banks and staff get paid what they are owed first when a company is put into liquidation.
Mr Siddall will have to share what’s left with the taxman and and customers who are owed money.
If department store chain Beales goes under it will be “a disaster” for DK Bags.
The small business imports handbags from China and sells them on to customers in the UK.
One of their clients is Beales, which went into administration on Monday.
And that’s a worry for Ian Siddall – one of the owners of DK Bags – because the department store chain still owes his small, Kent-based business £25,000.
Earlier this week, Beales boss Tony Brown told the BBC that he was trying to shore up the company’s finances by closing some stores. And the administrators insist that they are in talks to sell the chain.
But since the firm was put into administration, signs have gone up at Beales stores saying: “Closing down, everything must go.”
Meanwhile, the company’s online shop has been replaced with a notice advertising the closing down sale, which is happening at each of its 23 shops.
But Mr Siddall thinks that is unfair because he will be among those at the back of the queue to get paid if the firm does go into liquidation.
“They will still be selling the bags now but we won’t get any money,” he said.
That’s because other creditors such as banks and staff get paid what they are owed first when a company is put into liquidation.
Mr Siddall will have to share what’s left with the taxman and and customers who are owed money.
