Independent retailers associated with Trouva, an online marketplace, continue to face delays in receiving payments, causing financial distress.
- An official communication from Trouva cited funding issues as the reason for the payment delays but offered no concrete timeline for resolution.
- Retailers have voiced concerns over the lack of communication and responsiveness from Trouva amid ongoing financial uncertainties.
- Some retailers have suspended their activities on the marketplace, expressing doubt about Trouva’s ability to resolve the issues soon.
- The situation has sparked fears among independent business owners, with some believing the company’s financial troubles may be insurmountable.
Independent retailers affiliated with the London-based online marketplace Trouva are expressing growing concern over prolonged payment delays. The marketplace partners with over 650 brick-and-mortar boutiques across the UK and Europe, providing a platform to reach global markets. However, an unresolved funding issue has halted payments to these partners, leaving many in financial limbo.
On 15 August, retailers received an email from Trouva with the subject ‘Late Payments Status’. This email acknowledged the delays, attributing them to unforeseen issues linked to an impending funding round. The message assured that efforts were underway to rectify the situation and resume normal payment operations quickly. Yet, retailers have reported no further updates or engagement from Trouva since then.
One retailer, who wished to remain anonymous, disclosed that Trouva has failed to pay most of its independent partners. Despite the promises, the last meaningful communication was conveyed over two weeks ago. Compounding their frustration is Trouva’s unresponsiveness to calls or emails, leaving retailers in the dark about the status of their payments.
In response to these uncertainties, some retailers have taken the precautionary step of suspending their sales on Trouva’s platform. One store owner has even urged others to activate ‘holiday mode’ on their accounts to prevent further transactions, expressing a newfound scepticism about receiving owed payments.
Communication from Trouva suggests that a recent funding round is obstructing payments, yet a definitive date for resolution remains elusive. Retailers who spoke to Drapers fear that the financial predicament could spell the end for Trouva, should the situation not improve. One retailer starkly summarised the gravity: ‘They haven’t paid anyone for months. I suspect it’s game over for them.’
The ongoing uncertainty surrounding Trouva’s financial operations has left its associated retailers in a precarious position, reflecting the challenges faced when digital marketplaces encounter unresolved funding issues.
