Comment by prophesi
18 hours ago
Corporate is also claiming that they don't allow stores to take on consignment deals, contrary to their franchise agreement explicitly allowing franchise owners to take on consignment deals.
18 hours ago
Corporate is also claiming that they don't allow stores to take on consignment deals, contrary to their franchise agreement explicitly allowing franchise owners to take on consignment deals.
I have absolutely no doubts a court would consider it impossible to transfer goods under consignment to a different entity free of the burden of the consignment contract. So the corporation trying to reach into the franchise to grab these goods without honoring the contract is absolute BS and they should be dragged through the mud over it.
The unfortunate loophole here is that, potentially, by shutting down that franchise in a bankruptcy the corporation may end up being preferred for being made whole on debts relative to the consigner. Bankruptcy is complicated so while I am pretty sure any remaining goods from the consignment would be returned to the original owner the proceeds from sales that were successfully made might end up in the pocket of the corporation.
Personally, I absolutely loathe consignment. It is an incredibly complex agreement with a lot of weird edge cases about deprecation of goods and the duty to seek a good price that get complex quick. If you have goods like this and can find a store that will buy your goods in bulk you should be very careful in considering how much you care about the price difference between that bulk price and the percentage they list for consignment. A single transaction is usually much cleaner and easier for both sides and in this case (trying to pay for medical costs) having the money immediately can be quite attractive.
If you look at the latest stuff from the previous owner where they recorded multiple conversations / pulled security footage... https://www.youtube.com/watch?v=zedmOopRTm0 1, they were allowed to do consignment deals, 2, when corporate took control, they said they'd take on the consignment liability, 3, BAM outright threatens them with making the legal process too expensive for them.
All of which contradicts the current corporate response
yeah, it’s plain as day they say blatantly they’ll take on the consignment.
the reckless ben youtube videos are pretty clearly laid out with contracts, video evidence, etc..
the crazy part to me is how blatant the executives of bricks and minifigs are in saying go ahead and try to sue us, we’ll drag this out until you’re broke from lawyers fees. we’re a lawyer rich corp and you’re not. they don’t even try to hide it.
bricks and minifigs are just crazy dickens movie tier evil it’s crazy.
5 replies →
yeah you cant just unilaterally cancel the contract in which you agreed to hold the goods for sale, and then take possession without any reimbursement.
You either need to pay the sales price of the consigned items, or just give them back.
If you do neither, its the same exact thing as theft. Which is what they did. They took possession of the 200k lego set with no reimbursement. Just plain ol' theft.
> I have absolutely no doubts a court would consider it impossible to transfer goods under consignment to a different entity free of the burden of the consignment contract.
Reminds me of the whole "disney must pay" debacle.
Was that the incident where they stole an artists tiki design?
6 replies →
The problem with consignment is that the consignor wants the maximum price but the consignee wants a quick sale because 10% of a few bucks more means very little and they have to hold the inventory.
Selling on consignment can be an absolutely great deal for shops, under the right conditions.
If I'm a lego trader and I buy your set for $900 hoping to sell it later for $1000, in the meantime that's $900 I can't invest in anything else. And maybe I guessed the set's value wrong and I end up unloading it for $800, taking a loss.
On the other hand, if I agree to sell that same set on consignment? Zero capital outlay, zero risk of me taking a loss - just some shelf space and admin work.
11 replies →
"Holding inventory" is only problem if the store is full.
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Yup, if I worked in a field where consignment was an option I'd refuse to do it - it's a huge headache. So I'd absolutely believe that the corporation has a policy against accepting consignment offers and might have a case to recover damages or something against the original franchisee. But the way they've handled this situation still appears to be atrocious. Lets say you consigned 200k at a 10% commission, 50k sold under the original franchisee and you were paid 30k already. If the franchise transferred and the company wanted out there should be an exit[1] in the contract to pay the additional 15k and then return the goods to the original owner. I think it's important to remember this sort of an option was always on the table.
1. Even if the original consignment contract was poorly drawn up without a clear exit clause I think it'd be reasonable to expect a resolution somewhere close to this in mediation.
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In bankrupty a court appointed liquidator can seize assets and sell them to repay creditors. Of course none of this happened here.
They can seize assets that belong to the entity. They can’t seize assets that belong to other people just because it happens to be on their premises, in the same way that they can’t seize and sell the cars that happen to be in a bankrupt store’s parking lot.
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They can't sieze consignment stock though?!?
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bricks and minifigs is going to lose a hell of a lot more than this 10% in business
regardless of the law, it’s a very stupid move on the company’s part.
if they had half a brain they’d pay double the commission and pretend it aas internal miscommunication. $40k is cheap versus the pr hit they’re taking right now
The (former) franchise owner shared their contract with BAM that explicitly allowed consignments.
I’ll make sure if I’m ever listing anything through a store via consignment that I remember to ask if the contract with their their franchiser allows consignment in the event that the franchisees folds. You know, typical stuff.
Corporate is lying a lot, and is pretty clearly guilty of theft at the very least.
The bigger problems I see here are:
1. You can't really sure large corporations like Bricks & Minifigs. They've got deeper pockets and can drag it out until you go bankrupt. There's no good legal recourse for this, meaning larger corporations can basically do whatever they want and ignore the law, as long as they only hurt people smaller than them.
2. The police refuses to treat this as the theft it is. There have been several confrontations with police that give a very strong impression that the police is corrupt and protecting the Bricks & Minifigs and its crimes.
3. Reckless Ben's questionable shenanigans seem to be the only way to fight for justice in unequal situations like this. The offending franchise is now closed. The victim still doesn't have his lego or money back, but thanks to Ben, Bricks & Minifigs is now also feeling the pain. Without that, they would have simply gotten away with it. Chance are they've done stuff like this before.
Also interesting are some of the stunts Ben has pulled:
1. Confronted with the claim that it's a civil matter, he tried turning it into a crime, by holding a raffle for one of the stolen sets that's still legally owned by the victim. The winner of the raffle went to pick it up, and was refused, making it theft from a lottery, which is a crime that the police is supposedly required to investigate (they didn't).
2. Several people buy $10k worth of lego from the victim and claim it from the shop. When they're refused, they go to small claims court, which is now possible because it's only $10k. Bricks & Minifigs ignored it and closed the shop instead. There are default judgements in favour of the people helping the victim, but there doesn't seem to be any way to enforce them.
3. He went out of his way to get the company to sue him, which is apparently better than him suing the company? I'm not sure why. But Bricks & Minifigs didn't bite.
The most effective thing has simply been the PR. The public attention may finally get law enforcement to investigate and punish Bricks & Minifigs. Or at least the broader public will know and avoid Bricks & Minifigs, so at least the company gets punished financially. That won't help the victim, but at least it would be some measure of justice.
#1 is a bluff. It would be really hard to drag it out and judges hate that. You are much more likely to end up paying the costs of the little guy as sanctions than bankrupting them or whatever.
This is also straightforward enough and enough evidence exists that it would be hard to drag it out.
>you can’t really sue
You definitely can sue a large corporation and win or force a settlement. The “we’ll drag this out until you are bankrupt” thing is more bluff than reality. Courts do not react favorably to that. Especially when they have direct evidence of those threats.
A corporation may have a litigation cost advantage, but they’re still going to spend more than the $180k or whatever that they owed to execute this drag it out forever strategy.