Click Mobile forced to close stores
13:25PM Wed 29 August 2007
13:25PM Wed 29 August 2007
Click Mobile has closed its three retail stores as store staff were being threatened by angry customers demanding their cashback payouts.
Early this month, the retailer sent a letter to customers claiming cashback cheques 'may not be honoured'.
The retailer has been unable to pay customers hundreds of pounds worth of cashback because Barclays has frozen its account, according to Click Mobile director Saj Khan. The company claims it will seek legal action against Barclays for freezing its account and prompting the subsequent financial difficulties.
The stores in Hounslow, Ilford and Southall closed on Saturday and Khan expects them to remain shut for a further two weeks. 'That was on police advice because they have been called out to our premises a couple of times now.'
He added: 'We have had a meeting with the solicitors and lawyers and we are instigating legal proceedings against Barclays for damages that it has caused to our business.'
Barclays declined to comment.
The company made a 'conscious decision' not to take on any more new business until the cashback problems were resolved, but the stores remained open throughout August to offer a 'customer service function'. Khan said customers can contact the company via its call centre while the stores aren't operating.
Click said its plans to pay customers' cashback within four to six weeks are still on track. 'That situation is still the same; that hasn't changed.'
Early this month, the retailer sent a letter to customers claiming cashback cheques 'may not be honoured'.
The retailer has been unable to pay customers hundreds of pounds worth of cashback because Barclays has frozen its account, according to Click Mobile director Saj Khan. The company claims it will seek legal action against Barclays for freezing its account and prompting the subsequent financial difficulties.
The stores in Hounslow, Ilford and Southall closed on Saturday and Khan expects them to remain shut for a further two weeks. 'That was on police advice because they have been called out to our premises a couple of times now.'
He added: 'We have had a meeting with the solicitors and lawyers and we are instigating legal proceedings against Barclays for damages that it has caused to our business.'
Barclays declined to comment.
The company made a 'conscious decision' not to take on any more new business until the cashback problems were resolved, but the stores remained open throughout August to offer a 'customer service function'. Khan said customers can contact the company via its call centre while the stores aren't operating.
Click said its plans to pay customers' cashback within four to six weeks are still on track. 'That situation is still the same; that hasn't changed.'
© Copyright 2007 : Noble House Media Ltd
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