€1 million paid in deposits to folded furniture firm

[Green_Bear]

Creditors’ meeting hears over €1 million paid in deposits to furniture firm
CAROLINE MADDEN
irishtimes.com/newspaper/fin … 18494.html

More than 1,000 consumers who paid deposits totalling more than €1 million to furniture firm Jim Langan, which is now in liquidation, are unlikely to receive the items they ordered.
Tempers flared at a creditors’ meeting held yesterday in Stillorgan, Co Dublin, where the company’s owner, Jim Langan, was berated by hundreds of irate customers who paid deposits, and in many cases paid in full, for furniture they have not received.
The Dublin retailer, which had showrooms in Liffey Valley and Carrickmines, closed in March after failing to secure funding from banks and outside investors.

[boxplayer]

Right at the end is this gem.

Several customers had borrowed to put deposits on items of furniture and are paying off the loans even though they never received their orders.

[alanp]

@boxplayer

Right at the end is this gem.

Several customers had borrowed to put deposits on items of furniture and are paying off the loans even though they never received their orders.

In very slight mitigation, Langan’s idea of a deposit was 50% of the total price :- so if you were buying say 2000 euros of a sofa, the deposit was a grand.

Borrowing to buy furniture is obviously and inherently a fundamentally bad idea, but it’s not necessarily true that people were borrowing to pay say 100 quid deposits.

[spqr64]

@alanp

@boxplayer

Right at the end is this gem.

Several customers had borrowed to put deposits on items of furniture and are paying off the loans even though they never received their orders.

In very slight mitigation, Langan’s idea of a deposit was 50% of the total price :- so if you were buying say 2000 euros of a sofa, the deposit was a grand.

Borrowing to buy furniture is obviously and inherently a fundamentally bad idea, but it’s not necessarily true that people were borrowing to pay say 100 quid deposits.

If that was the case then his 50% deposit was probably more than enough to cover the wholesale price of the furniture and to be honest it doesnt surprise me that people borrowed to buy furniture in this country as they borrowed to but every feckin thing else.

[boxplayer]

@alanp

@boxplayer

Right at the end is this gem.

Several customers had borrowed to put deposits on items of furniture and are paying off the loans even though they never received their orders.

In very slight mitigation, Langan’s idea of a deposit was 50% of the total price :- so if you were buying say 2000 euros of a sofa, the deposit was a grand.

Borrowing to buy furniture is obviously and inherently a fundamentally bad idea, but it’s not necessarily true that people were borrowing to pay say 100 quid deposits.

Ok, that makes ‘more’ sense then, my idea of a deposit was of the €100 variety.

[Bigby]

I’ll be there’s a lot of revulsion towards the idea of large deposits for the next while. Would *you *pay a large deposit if you thought there was the slightest chance of a business going under before you got your goods? Which ironically could tighten cashflow and push marginal business to the wall.

[The_Naked_Chef]

Would you pay a large deposit if you thought there was the slightest chance of a business going under before you got your goods? Which ironically could tighten cashflow and push marginal business to the wall.

Banks. Banks. Banks.

Past performance is not a guide to future performance and all that…

[songster]

@The Naked Chef

Would you pay a large deposit if you thought there was the slightest chance of a business going under before you got your goods? Which ironically could tighten cashflow and push marginal business to the wall.

Banks. Banks. Banks.

Past performance is not a guide to future performance and all that…

Let’s hope so…

[clairec]

@Bigby

I’ll be there’s a lot of revulsion towards the idea of large deposits for the next while. Would *you *pay a large deposit if you thought there was the slightest chance of a business going under before you got your goods? Which ironically could tighten cashflow and push marginal business to the wall.

A good argument for putting deposits on credit cards

[DEADLYBUZZ]

I put €500 on furniture totaling just over €1,000 I think two days after Christmas. The sales person said everything would be delivered by the end of January. I called at the end of January and was told there was a standard lead time of 12 weeks for the stuff I ordered and they wouldn’t arrive until April.

Understandably I kicked up shit about this and after a few heated aguments they agreed to refund me. About a week later I received a cheque for €500 in the post and cashed it quickly with no problems. I guess I was one of the lucky ones!

[DEADLYBUZZ]

@DEADLYBUZZ

I put €500 on furniture totaling just over €1,000 I think two days after Christmas. The sales person said everything would be delivered by the end of January. I called at the end of January and was told there was a standard lead time of 12 weeks for the stuff I ordered and they wouldn’t arrive until April.

Understandably I kicked up shit about this and after a few heated aguments they agreed to refund me. About a week later I received a cheque for €500 in the post and cashed it quickly with no problems. I guess I was one of the lucky ones!

To add to this - I had paid the deposit by CC so was always going to charge back if there was a problem.

[jihle]

@Bigby

I’ll be there’s a lot of revulsion towards the idea of large deposits for the next while. Would *you *pay a large deposit if you thought there was the slightest chance of a business going under before you got your goods? Which ironically could tighten cashflow and push marginal business to the wall.

The solution is bilateral credit arrangements such as layaway. Or saving and paying cash for big-ticket items. Of course, if Lenihan notices anyone saving money, he’s going to tax the hell out of them - a tacit acknowledgment that the FF economy is/was based on leverage. Yay!

[The_Naked_Chef]

The solution is bilateral credit arrangements such as layaway. Or saving and paying cash for big-ticket items. Of course, if Lenihan notices anyone saving money, he’s going to tax the hell out of them - a tacit acknowledgment that the FF economy is/was based on leverage. Yay!

I`m doin this at the mo for a very nice ring so that I can make an honest woman out of Mrs Naked CHef - ( Well soon to be). I go once a month. another few quid. Great feeling.

No Leverage for me .

Apart from the obvious.

[soc]

@jihle

@Bigby

I’ll be there’s a lot of revulsion towards the idea of large deposits for the next while. Would *you *

pay a large deposit if you thought there was the slightest chance of a business going under before you got your goods? Which ironically could tighten cashflow and push marginal business to the wall.

The solution is bilateral credit arrangements such as layaway. Or saving and paying cash for big-ticket items. Of course, if Lenihan notices anyone saving money, he’s going to tax the hell out of them - a tacit acknowledgment that the FF economy is/was based on leverage. Yay!

Y’see, this is the bit that gets me… you can’t spend it because things are too expensive and you can’t save it because the government will find a way to tax the hell out of you. (OT I received a bank statement for a savings account I have and it was comical to see the interest rates listed drop like a stone over the past 8 months - down from a heady high of 7% to a miserable low of 0.75% on which I’m paying the 25% dirt )

Buckly up boys, this ride is just starting to get interesting…

[buddygunz]

Anybody who put a non cc deposit on furniture in the last 12 months is an idiot.

[Bigby]

constructive - thanks for that buddygunz.