Independent marketplace Trouva is currently experiencing delays in payments to its partnered retailers, sparking concerns among its community.
- The delays, initially communicated in August, have been attributed to issues with funding rounds.
- A second apology was issued in September, acknowledging the ongoing impact on some businesses.
- Some retailers are contemplating legal action due to the continued delays.
- The situation follows Trouva’s acquisition by Fy! in July, marking its third change of ownership in two years.
Independent marketplace Trouva, a London-based company connecting over 650 brick-and-mortar boutiques across the UK and Europe, is facing scrutiny due to delayed payments to its partnered retailers. The company first reached out on 15 August, attributing the payment delays to unforeseen issues with a new funding round.
By 18 September, Trouva issued a second communication acknowledging the persistent delay, expressing regret for the significant impact on partner businesses. A spokesperson stated, “We understand the ongoing delays are having a material impact on their businesses and for that, we are truly sorry.” While specific figures were not provided, it was confirmed that some payments have been processed, with efforts underway to address the remaining delays.
The company assured partners of continuous updates as they navigate the funding complications, aiming to resolve payment issues swiftly. However, growing dissatisfaction among some businesses has prompted considerations of pursuing claims through the small claims court, highlighting a crisis of confidence in third-party platforms. This sentiment was echoed by a retailer lamenting a prior loss with Atterley, now seeing Trouva “destroying faith in third-party platforms.”
Founded by Alex Loizou, Mandeep Singh, and Glen Walker in 2015, Trouva received £17 million in investment in 2019 to support international expansion. Trouva’s recent acquisition by Fy! in July, marking the third change in ownership within two years, may be contributing to its current financial challenges.
The ongoing payment delays present a significant challenge for Trouva as it seeks to restore trust with its partnered retailers.
