Southwest retailer JAG last week denied claims it has not been honouring customers’ cashback claims.
Managing director John George (pictured) explained: “I know the cashback payments are being honoured because I’m signing the cheques myself,” he said. “When we switched accounts, a letter was sent to all our customers to inform them of this and that their payment may be delayed. If a cheque was received under the company’s old name, we asked them to send it back and they would be re-issued with a cheque from the new company. That is all up to date now.
“The only ones that we aren’t allowing to be processed are those from customers that have invalid claims. We would have been slightly lenient about this before but we have to take a stronger stance now because of the position we find ourselves in.”
George has been using his own money for the past two months to buy off liabilities, including money owed to network suppliers and cashback to customers.
JAG went through a ‘prepack’ administration at the end of January after its £2.3 million overdraft was withdrawn by Lloyds TSB, stopping it from paying its liabilities.
The assets of JAG Communications (Plymouth) were then sold to a new company, JAG Communications (South West). The plan was for the retailer to continue as a viable company while the old company remained in the hands of the administrators.
George also restated the business retains its Orange Federated Dealer status, despite operating under a different name.
“Nothing has changed in that respect,” he said. “Orange has been very supportive towards us in our difficult times.”