As the news of BDA’s acquisition of Dukes of London swept throughout the industry, many suppliers were left angry and confused.
With a clear message from Jay Deutsch, CEO of BDA, that they acquired the business, suppliers were shocked to find out that debts were not being honored by BDA with many losing thousands of pounds.
One supplier who preferred to remain anonymous said: “When we read that BDA had bought Dukes and not just certain assets, we were over the moon. We called to chase the debt and were firmly told that BDA did not buy the business, just the assets.”
PPD pondered last Friday whether BDA would arrange a pre-pack and in doing so leave suppliers high and dry.
Suppliers that have reached out to PPD so far report losses of between £6-10k each with a total indebtedness of Dukes estimated at almost £1 million.
“The problem is that usually we wouldn’t carry on dealing with them,” another anonymous supplier elaborated. “But because these orders are of such high value, we have to. They’re so far in production that if we don’t fulfil them now, it’s just going to be even more onto the debt which is already substantial.
“I think everyone in the industry just needs to get together and say, ‘We need to have a higher price list for companies that do this.’ It’s unfair that they can just walk away from all of that debt.”
One group of suppliers has decided to boycott BDA with one saying: “With $300 million of sales they can afford to pay me my seven grand! It’s nowt to them but ruins my year.”