Dear Community Members,
I want to provide you with some background on our situation :
In 2008, I founded let’s say 111 Ltd after working hard and persevering to establish my own furniture business. Over the years, we faced challenges but saw progress with our dark Indian furniture, even though the market was predominantly dominated by light Oak Furniture from China. By 2013, our business had grown to £1.5m, and I continued to work tirelessly to expand it further. The pandemic brought highs and lows; while outdoor furniture sales soared, other business areas suffered.
To secure the future of our business and capitalise on our pandemic growth, we made a substantial investment of over £4.5m in various aspects, including a move to the Shopify platform.
2022 - However, economic factors like inflation, energy prices, and increasing living costs impacted consumer spending. We sought additional support from HSBC and considered taking a loan from Shopify.
Unfortunately, circumstances led us to seek advice from FRP (liquidator), and after a complex decision-making process, the company went into liquidation. This has had devastating effects, with 90% of my staff losing their jobs.
Despite the challenges, I was determined not to give up. I invested £150K of my money and secured a £60K loan to start over. Since December 2022, we have achieved nearly £1.6m in sales, showcasing our determination to rebuild.
However, a new crisis has emerged. We have had deduction from our new company account to Shopify. The money deducted is to the tune of over £100K is the loan amount company 111 (which is liquidation) We cannot pay our employees and suppliers, including Shopify, which has led to negative reviews and a potential disaster for our business.
While there was no formal agreement between Shopify and 222 ltd (the new company), Shopify received payment owed by the original company (111 ltd). The two companies have different ownership structures and are not linked.
During these last six months, I have faced immense difficulties. I informed Shopify of my recent diagnosis of PTSD and severe depression, hoping for understanding and support.It is heartbreaking for anyone who sees a collapse of their business.
I have not been able to pay my staff and after taking advice from business debt line - they informed that as I have failed to pay them, the staff are within their right to walk out of the office. I completely respect understand that and have sold few personal items to give everyone some holding money whilst Shopify is looking into my case. It does not help that my mental well being has been impacted due to collapse of original company and to gather funds and strenth to start all over again.
There are various avenues for help and support for new businesses, but virtually everyone looks at you less than favourably if you are starting again and trying to get back on your feet. It feels like the world is against you and no one wants to offer you a helping hand to get up. How do you learn and re-establish yourself when everywhere you look is difficulties, struggles and pain? It is quite disheartning.
Upon being informed of the erroneous payment, I had expected that Shopify would expedite the refund process. Still, I have been running in circles for the past six days, struggling to find a resolution.
I’m sharing this information with you in hopes that you can offer the support that we need at this critical juncture.
Thank you for your time and consideration.
I can also confirm both companies 111 Ltd (in liquidation) & 222 Ltd (current) have different share structure. We purchased the domain, IP rights, website etc from the liquidators so that we could establish the business again. I managed to save five jobs and started it again but little did I realize that I will be paying the debt of the old company.
The IP have confirmed that all debts of the old company will be dealt by them and settled with recovery of stock, bank account, assets, warehouse etc Finally, I was made aware by FSB (Federation of Small Businesses) & Business Debt Line and after reviewing the finances of the Oxford Furniture Company it was discovered that we have paid the monies which are not owed by Oxford Furniture Company Limited.
If you imagine, all the money owed by company 111; if company 222 has to pay then it is pointless going into liquidation. The liquidation happens when a company is insolvent and not able to pay it’s debts. If Shopify will not help us then the liquidator will be appointed again and the first job will be to go through the finances and they will realize that the money is owed to us.
I am really upset and worried about the future of my company and my team.
I am a loss for words, and this is giving me panic attacks.
Thanks
t