"Rogue retailer" forces Foundation to change code
March 11, 2024
The Carpet Foundation has said it will not be honouring orders from an insolvent retailer under its deposit protection programme, citing a "blatant abuse" of the scheme which threatens its viability.
Under the Foundation scheme, consumers' deposits of up to 50 per cent are guaranteed under its Code of Practice but the organisation says it will now have to re-write its rules after being inundated with calls relating to Cullingford Carpets of Wincanton.
Cullingford filed for insolvency in November but prior to the collapse the Foundation says that the business continued trading while knowing it was insolvent and used the Foundation's protection scheme to tell customers their deposits were safe. The Foundation says in many cases, Collingford did not then place customers' orders with manufacturers.
After taking legal advice and discussing the situation with Cullingford's administrators, the Foundation wrote to its members: "While there are moral and ethical issues, we fervently do not believe that the Carpet Foundation should be held accountable for the blatant abuse of the scheme by one of our retail members, nor should the malpractice of one retailer threaten the viability of the Carpet Foundation.
"The money entrusted to us by you, our law-abiding retail members, should not be spent on making good the foul play of one rotten apple. As a direct result of the actions of Cullingfords, we will be making changes to the Code of Practice to avoid a repeat of this behaviour and to reassure both members and the public, that it is fit for purpose," said the statement.
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