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Corporate Social Responsibility & Sustainability in China

Corporate Social Responsibility in China

B&Q Accused Of Defaulting On Goods Payments

July 25, 2007
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Consumer

Following similar recent incidents in Beijing and Guangzhou, suppliers of B&Q now have brought criticism of the home furnishing service provider to Shanghai, where the company's China headquarters is located.

According to local media reports, a team consisting of an industry association, suppliers and consumers is condemning B&Q's tough contractual clauses and they recently held a meeting in Shanghai. At the meeting, a representative from Home Nice Floor reportedly said that they had already filed a lawsuit against B&Q, which had defaulted on them for more than RMB2.7 million in goods payments.

Since June when Shanghai Yadier Decoration & Garment Company publicly accused B&Q for forcing its stiff clauses on the company and defaulting on payments, many suppliers of B&Q have come out to express their support for Yadier.

However a representative from B&Q's public relations department surnamed Xu has told local media that it is unreasonable for the suppliers to announce the problems in this way. He said that B&Q hopes to solve the conflict with the suppliers via legal means and he added that many suppliers' claims are baseless. Xu claims that B&Q had good relationships with over 99% of the suppliers.

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