Retailers face disruption to their drop shipment orders after Bestway-partnered IDC is to file for administration, according to sources.

Several senior industry sources told Better Retailing that the company, which also trades as Dropshipment UK, announced to partners of its intention to file for administration in December last year. The firm works with Bestway, Booker, McColl’s, Appleby Westward, Bobby’s, Eden Farm, Robert’s, Expresso Plus, Homeware Essentials and Williams of Swansea.

One source told Better Retailing that it had stopped payment terms with the company following the notice for administration. Meanwhile, internal communication from Bestway, seen by Better Retailing, said: “You may be aware of recent issues with some of your drop shipment accounts handled by IDC.

“We are currently working directly with suppliers for the continuation of Bestway Wholesale Drop Shipment supply via your existing account details and under your current agreed terms. Further updates will follow shortly.”

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Better Retailing understands IDC intends to announce if it has found a buyer at the end of January. The last time the company filed its accounts on Companies House was on 21 December, 2021, for the financial year ending 31 March, 2021.

The disruption has impacted supply for independent retailers, with some worrying about the strain on their availability. One store owner, who asked not to be named, said: “It’s really worrying for stores. With the energy bill rise we can’t afford empty shelves and we can’t afford to be left out of pocket by another collapse. We don’t know who to pay or who not to.”

Another added: “Plenty of drop shipment suppliers have started asking for direct payment in the last few weeks. One said that IDC had gone into liquidation.”

One store owner said that their wholesalers had asked if they were paying their invoices, following no payments from IDC in October/November. “They asked if I had cancelled my contracts with them,” they added.

Better Retailing has contacted IDC for comment.

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