Tesco blockaded over unpaid bills

A ROAD haulier has revealed that he was paid outstanding debts by Tesco only after being forced to mount a lorry blockade at the company's headquarters.

At one stage, Richard Wild faced bankruptcy and losing his business over invoices for around £400,000. He claims he was also bullied and intimidated by Tesco executives simply for asking for the bills to be settled.

Wild is just one of a number of small businesses that claim they are being crippled by Tesco's payment delays - leaving the first British retailer to make annual profits of more than £2bn at the centre of a militant backlash.

His company, Wild International, based in Redditch, Worcestershire, had a deal with Tesco to drive their goods from suppliers to distribution depots. But he was unable to pay his drivers and other staff after the supermarkets chain held up payments for months. So he took the drastic step of circling Tesco's HQ in Cheshunt, Herts, with 25 lorries. At the same time, his staff wrote to the company's directors pleading with them to pay up so they could meet their mortgage bills.

The protest also involved sending lorries effectively to blockade Tesco's major food distribution depot in Southampton and one of their biggest stores in Camberley, Surrey.

Wild said: 'Tesco were either very slow to pay invoices or they would withhold payments altogether. I couldn't pay my drivers and was on the verge of insolvency. I was forced into blockading their business premises to make them pay up - it was the only way.'

Insolvency expert Michael Lord-Castle said: 'Richard had to cease trading as Wild International to stave off bankruptcy and start a new company. But within five weeks, Tesco had run up another bill with his new company of between £200,000 and £250,000, which was in addition to the money they already owed his previous company. Richard then had to either call it a day, or fight it. He decided to fight.'

Wild added: 'When you are faced with losing your home, your family being split up and the same happening to your 35 employees, then you have to take drastic action. Tesco just wants to walk all over companies like us. I am here to tell you how they get the profits they boast about - they try to bankrupt companies like mine.'

An investigation by BBC Radio Four's You and Yours claimed Tesco had adopted similar delaying tactics with other small businesses. Tesco spokesman Jonathan Church said: 'We do recognise that there were some issues around paying invoices. I'm glad to say we have now sorted these out and all the money we owe Mr Wild has been paid.

'We work hard to have a good relationship with our suppliers and where issues are brought to our attention we will try to resolve them as soon as possible. It's clear from this case that misunderstandings have arisen and we need to look at this episode and make sure procedures are as good and as clear as they can be.'

Tesco said the average time to settle an invoice was four weeks. Although he has been paid in full, Wild has decided to cease working for Tesco. He is taking legal action for damages against the company to cover legal costs, time spent on chasing the bills and alleged harassment.