Retailers shun leases after supplier collapses

Retailers are taking out fewer leasing agreements to protect their supply chain in the event of a supplier collapse.

Over the past few months, many retailers have been left without a coffee supplier after the demise of Espresso Essential and Simply Coffee

In some cases, retailers have been left paying £500 for a coffee machine on a lease contract, which was provided by both companies through Henry Howard Finance. 

Raj Aggarwal, of Spar Hackenthorpe in Sheffield, told betterRetailing he no longer signs leasing agreements with suppliers due to the uncertainty in the market.

“Retailers signing up to contracts where the supplier ends up going bust has happened many times in the past. It’s not new,” he said.  

“Those contracts are normally done through a third party and the retailer is often left paying the bill. 

“I normally buy machines outright now, or ask if I can enter a trial first. I entered a trial with one company and found there was no demand for the products. I would have been left making a loss on the machine if I didn’t try it out it first.”


This article doesn't have any comments yet, be the first!

Become a member to have your say