Trouva is under scrutiny as payment delays to boutique partners continue unresolved for over two weeks.
- The online marketplace, headquartered in London, partners with over 650 boutiques across the UK and Europe.
- Retailers express concerns as Trouva cites funding issues causing payment delays.
- Retailers report a lack of communication from Trouva, escalating business concerns.
- Some boutiques have suspended sales on Trouva due to uncertainty of payments.
The online marketplace, Trouva, has recently come under fire from its boutique partners due to payment delays. The company, headquartered in London, collaborates with over 650 bricks-and-mortar boutiques across the UK and Europe, facilitating sales to more than 30 countries worldwide. Despite an apology email sent to its retailers acknowledging ‘delays in payments,’ the issue persists more than two weeks later.
The email, reportedly sent on August 15, was entitled ‘Late Payments Status.’ It cited an ‘unforeseen issue’ related to the awaited completion of an ‘imminent new funding round’ as the cause of the disruptions. Trouva assured its partners that they were ‘working tirelessly to resolve this issue and resume normal payment operations as swiftly as possible.’
However, several retailers, including one who has chosen to remain anonymous, conveyed their concerns to media outlets like Drapers, fearing prolonged payment delays. ‘Trouva still hasn’t paid the bulk of their independent retail partners,’ a business owner noted, adding there had been no further communication from the company regarding when payments could be expected.
The lack of communication has led to frustration among some retailers. One store owner mentioned suspending all sales on Trouva and urged others to do the same. He advised that, ‘At the very least, retailers should put their accounts into ‘holiday mode’ and not process any more transactions.’
Reports suggest that Trouva missed payments as early as July, with additional payments due in early August also going unmet. One retailer expressed a sobering realization: ‘We didn’t receive our payment in July, and they missed the payment on 2 August, at that point I realized we are probably never going to see the money.’ He went further to speculate that the situation may signify the end for Trouva’s business model.
The uncertainty surrounding future payments is exacerbated by Trouva’s financial difficulties. Some boutique partners were informed that although the company is optimistic about the ongoing funding round, no specific payment dates can be guaranteed. This vague assurance has done little to alleviate concerns and fears among retailers reliant on the marketplace.
Trouva’s ongoing payment challenges highlight significant strain and uncertainty within the independent retail community.
