We are a humanitarian company which has a small clothing company (social entrepreneur model) to help fund local art/music programs for youth & international schools for underprivileged kids.
This past season we used a "fair trade" production company to have clothing made, and they ended up using a manufacturer in China. When we received the clothing it was defective, (50k manufacturer cost, 120K wholesale value, and 230K retail value.)
95% of the items are tee shirts and the other part are hoodies. Problems with the tees included inconsistent sizing, (ex. small being the same size as a large,) the tagging was wrong (bleed through garment & manufacturer misspelled the care instructions. Thus, the clothing is not usable. I should note that the hoodies where made correctly.
The problem is we have lost around 100K in orders. Even though the hoodies were made correctly customers don't want 10% of their order. Because we are such a new clothing company we also risk losing these customers in the future because of us not being able to come through this season.
The production company in LA has not accepted any responsibility and is saying we owe them money for the defective goods. What should we do? Thanks.
This past season we used a "fair trade" production company to have clothing made, and they ended up using a manufacturer in China. When we received the clothing it was defective, (50k manufacturer cost, 120K wholesale value, and 230K retail value.)
95% of the items are tee shirts and the other part are hoodies. Problems with the tees included inconsistent sizing, (ex. small being the same size as a large,) the tagging was wrong (bleed through garment & manufacturer misspelled the care instructions. Thus, the clothing is not usable. I should note that the hoodies where made correctly.
The problem is we have lost around 100K in orders. Even though the hoodies were made correctly customers don't want 10% of their order. Because we are such a new clothing company we also risk losing these customers in the future because of us not being able to come through this season.
The production company in LA has not accepted any responsibility and is saying we owe them money for the defective goods. What should we do? Thanks.
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