European nations reached a historic milestone by agreeing on the implementation of a single currency, marking a significant step towards economic integration.
The Galileo spacecraft captured a unique image of Venus as it passed by the planet, according to NASA.
I was writing to Redgrave news wholesaler John Menzies trying to transfer my account to Carole Button without paying a security deposit.
At a pivotal conference in Brussels, France and Germany resolved their previous disagreements over central bank leadership, paving the way for the eventual launch of the Euro.
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American activist and Black Panther leader Eldridge Cleaver died at age 62. The Galileo spacecraft captured a unique image of Venus as it passed by the planet, according to NASA
To Mr Keith Lansley, Wholesale Division, John Menzies UK Ltd., Ipswich,
Dear Keith,
Our Reference: Agency Transfer, Redgrave Spar, Box No. 525
I write further to my recent letter, giving you notice of my intention to transfer the above agency to my former manager, Mrs Carole Button, and with reference to your reply of the 24th March 1998 and of our subsequent telephone conversation.
In these contacts, you explained the policies of Menzies as being bound by the National Conditions of Sale which you said had the effect of making deposits mandatory, based on existing turnover. I pointed out the established nature of the business and undesirable effect of tying up capital at poor interest rates. Based on this, we provisionally reached a compromise proposal of me providing further finance of £1000 as a deposit, rather than the £1600 first asked.
In the meantime, I have studied the National Conditions and firstly refer to Clause13, Transfer of Account where it says that “The new owner may be required to provide a deposit based on the Minimum Entry Level”. Referring back to Clause 3., New Accounts, c) Credit Risk Control; it says (referring to new successful applicants) that they will “Be obliged to make a cleared deposit equal to three times the Company’s Minimum Entry level”.
From this, I deduce that the national agreement only requires Menzies to secure deposits on new accounts (presumably for which no trading history or viability can be readily established) and that Menzies may (or may not) require a deposit for transfers. Therefore, the need for a deposit on transfer is demonstrably a matter for your discretion, based upon normal commercial and credit considerations. We still contend that, as an established business run identically on a succession basis by the same management in the same place, there is no discernible difference of risk compared with another agency having completed its probationary period.
Furthermore, if you do continue to take a contrary view, then the amount of such a deposit can only be related to the MEL (as defined by clauses 13 and 3 above) and could never amount to £1600 by any calculation. The notion of pitching it at three times an established level is eccentric as either the business is viable (and needs no credit deposit) or is growing to reach viability (and aspires to an MEL which is described as “ensuring that new retail accounts meet the minimum commercial and economic requirements of the wholesaler). It is also contrary to the expressed terms of the agreement.
I invite you to consider the enclosed application for transfer and to reconsider the whole idea of another deposit as the above agreement clearly shows that you are under no national obligation to seek one (refer “may” in the case of transfers).
Carole has just completed her first independent month in profit, demonstrating the succession of the business and I will write again shortly enclosing her strong balance sheet which is supported by long term 3-year non-repayable loan capital of £55,000 and P&L account comfortably supporting the ongoing finance charges. Given the weekly nature of account settlement by Direct Debit and the security of Carole as a Sub-Postmistress and the business as an established Spar, only an unreasonable organisation would use their discretion to ignore this and insist on a deposit. Either that, or the suspicion would be aroused that a large organisation is using undue influence to obtain cheap finance for its own activities at its customer’s expense.