Local media reports that Britain's B&Q has finally pledged to refund the goods payment of Shanghai Yadier Company after a two month debt dispute.
According to the report, B&Q has reached an agreement with Yadier and agreed to return RMB12 million goods payment to Yadier.
Yadier reportedly demanded a repayment of a debt from B&Q because B&Q allegedly adopted an unfair policy for suppliers: B&Q has asked each supplier to guarantee that their sales at B&Q store will reach a certain volume and they will pay B&Q a certain amount of profit as commission. If a supplier can't reach the specified amount of sales of commission, which is usually increased year by year, then B&Q will deduct the part of money from the supplier's goods payment.
In 2005, B&Q set a bottom sales of RMB70 million for Yadier, but the latter only sold more than RMB50 million that year. As a result, B&Q deducted more than RMB4 million from it. Cui Jin Shouguan, general manager of Yadier, told the media that B&Q had deducted a total of RMB16 million from Yadier's goods payment with various excuses over the past years.
While agreeing to refund Yadier, B&Q reportedly also hopes to continue the cooperation with Yadier, which stopped supplying goods to B&Q in June. Cui said that his company is now considering resuming the goods supply to B&Q.