Trouva, a London-based online marketplace, has issued apologies to retailers for ongoing payment delays, with some dates stretching back to early August.
- The company partners with over 650 boutiques across the UK and Europe, indicating the widespread impact of these financial delays on small businesses.
- Initially attributing the delays to an ‘unforeseen issue’ with a funding round, Trouva assures that the first set of delayed payments has been processed.
- Despite assurances, concerns grow among retailers, some of whom are contemplating legal action to recover outstanding payments.
- Trouva, once a promising startup, has changed ownership multiple times in recent years, raising questions about the stability of third-party platforms.
London-based online marketplace, Trouva, which collaborates with over 650 boutiques across the UK and Europe, has encountered significant delays in processing payments to its partner retailers. These delays have persisted since early August, prompting Trouva to send a second apology to the affected retailers. The company initially pointed to an ‘unforeseen issue’ related to the completion of a new funding round as the cause of the delays.
Trouva has stated that it has started processing the first batch of delayed payments and is committed to resolving the remaining delays as swiftly as possible. A spokesperson for the company acknowledged the severe impact these delays have on the businesses involved, expressing profound regret for the situation. ‘We understand the ongoing delays are having a material impact on their businesses and for that we are truly sorry,’ the spokesperson remarked.
Despite Trouva’s efforts to manage the situation, discontent is growing among its partners. Some businesses are reportedly considering taking legal action, specifically through the small claims court, to recover the funds owed to them. This level of dissatisfaction underscores the precarious nature of relying on third-party platforms for revenue.
Trouva’s situation is further compounded by its recent acquisition history. Having been launched in 2015, Trouva secured £17m in 2019 to expand internationally but has changed hands several times since. Most recently, it was acquired by Fy! in July, marking its third ownership change in two years. Such developments draw attention to concerns about the long-term stability and reliability of the platform.
The ongoing payment issues at Trouva highlight vulnerabilities in third-party marketplace models and the resultant strains on independent retailers.
