From funkrodent’s comment on the article:
Interesting, been following from afar. My two penn’orth is that they went into this all brazen and big b*ll*cks, with no real clue regarding the multiple complexities of running a manufacturing/sales/fulfilment business of this type (as alluded to by Hannah). And now they are way out of their depth.
As to why they’re still taking orders? Cashflow. They need money coming in to deal with the backlog of shite that they have. Robbing Peter to pay Paul and hoping to god that they can get it sorted before the whole house comes crashing down. Not exactly a Ponzi, but not too far removed..
This is pretty much what my take on this sorry episode is.
Add into the mix a bunch of millennials who had started to believe their own bullshit whilst in actual fact not knowing their arse from their elbow and you get this. ‘Likes’ on the internet do not equate to cash in the bank.
Doubling down on the ‘attitude’ when it all starts to unravel just means more aggro for them.
However, after the initial “Oh shit, dude, we’ve like actually got to pay for the stock now” moment should have come a “We’re in big-ish trouble here, but we could make this a whole lot worse if we carry on regardless, so let’s grow up a bit and hold our hands up” moment.
Carrying on taking orders on new stuff to have the cash to satisfy the existing orders or refunds is wrongful trading and company directors (I know, soooooo uncool to have them) can end up in prison for that ‘one last sale and we’ll be able to pay the rent and have another three months to turn this around’ temptation.
In summary. Bunch of muppets got out of their depth. Kept doubling down but losing. Could have been a few hundred quid out of pocket, most likely will end up in quite a bit of trouble. I’d recommend ‘Rogue Trader’ (the Nick Leeson story) as a bit of required viewing for the Sick Lads. His basic mistake was to be a strutting wise boy who couldn’t admit to a relatively small mistake and kept rolling the dice in the hope of salvaging the situation.