What happens if the Consignment Inventory doesn't sell?

Written by Kaylyn Perry

Last published at: December 3rd, 2021

Kickfurther Brands are required to pay back Buyers as they sell the Consignment Inventory specified in each Co-Op according to the payment timelines.


There are two scenarios for slow or no sales we’ll review here:

(1) If sales of the Consignment Inventory fall behind projections causing a payment less than the expected payment to be owed; and, 


(2)f the Brand is ultimately unable to completely sell through the funded Consignment Inventory.


If a Brand’s sales fall behind projections, the Brand can, of course, still pay the expected  amount if they’re able. If the Brand’s sales are less than the expected sales and it cannot or will not pay the expected amount, the Co-Op will be flagged as troubled.


If a Brand's Consignment Inventory doesn't sell as expected, the Brand can either (i) return the inventory as part of the consignment deal, which will give Buyers the opportunity to receive the inventory themselves. Buyers not wishing to take delivery of the inventory may elect to have Kickfurther send it to a liquidation partner and receive their pro rata share of those liquidation proceeds, if any.


If there is no Consignment Inventory to return or the Brand has made sales of the inventory for which we have not received payment, the Brand is obligated to provide payment for the Consignment Inventory which was sold or unreturned.


If the Brand is unable to return the required Consignment Inventory and/or provide any outstanding payments owed after the cancellation of a Co-Op, the Brand will have the opportunity to offer a settlement vote to Buyers. If the Consignment Inventory and/or any requirements aren’t made by the Brand and the Brand is unable or unwilling to offer an acceptable settlement, then the outstanding balance will be placed with a collections agency.

Learn more about our cancellation process here