Online clothing retailer Vancl pays off debt to some suppliers but still owing others; concerns remain over late payments

By Yang Jing Source:Global Times Published: 2013-10-21 0:08:03

Vancl's logo Photo: CFP

Vancl's logo Photo: CFP

Vancl Technology Ltd Co, the Chinese online clothing retailer which runs, started making delayed payments to some suppliers last week, but other suppliers remain worried about whether they will get paid, a Vancl supplier said over the weekend.

Hong Shushu, an operation director at Honru Co. Ltd, a garment producer based in Wenzhou, East China's Zhejiang Province, told the Global Times Saturday that some suppliers have received payments from Vancl, but the payments are only part of the total amount owed.   

According to a list obtained by the suppliers, Vancl will pay some suppliers in October, but Honru is not on the list, Hong said.      

Vancl has owed Honru more than 100,000 yuan ($16,339) since the company started to sell products on the website in July, Hong told the Global Times.

The payment is being given to suppliers in chronological order and Vancl will pay the debts for August and September first, a staff member of Vancl's public relations department, who asked to be anonymous, told the Global Times Sunday, noting he has no knowledge of the list.

Hong told the Global Times that Vancl requested suppliers to terminate their contracts with and sign a new contract with, a website run by a company fully owned by Vancl.

The anonymous PR staff said would be a platform intended only for third-party retailing, so that is why suppliers are being asked to sign new contracts.

Hong said suppliers are worried that the sales data, which shows records of the debts owed to them by Vancl, might be deleted after they terminate their old contracts with and then Vancl might not pay the rest of its debt.

The PR staff member of Vancl did not comment on what would happen after the suppliers sign  new contracts with

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