Administrators for electrical distributor Bridisco Group have written to retailers telling them to pay 'in full' for new goods regardless of anything they might be owed.
Ernst and Young the administrators for the group, also known as the British Distribution Company (BDC), wrote to suppliers on 24 November following the firm's collapse on 21 November.
The letter said the firm is continuing to trade 'as normal' but went on to ask retailers to: "Confirm all goods and services supplied ... will be paid in full without deducting or setting off any monies you may be owed."
In other words write off any outstanding claims for damaged or returned goods, a request, that not unpredictably, hasn't gone down well with the trade.
One stockist told diyweek.net: "I'm not signing that," and went on to say there was nothing in their range, other than the company's Micromark and Coolzone house brands, he couldn't source from other suppliers.
A spokeswoman for Ernst and Young was tight lipped on their plans for the firm, refusing to be drawn on whether it was being sold as a going concern or split up. She also declined to comment on what firms, if any, had displayed an interest.
Meanwhile, Outkey Distribution Limited trading as 247 Electrical and through the website www.247electrical.co.uk was forced into administration as a result of Bridisco's collapse.
A statement from the firm read: "Following a major supplier entering administration, the company has had to cease trading."
Begbies Traynor, of Brighton, has placed the firm into creditors' voluntary liquidation.