A number of things happen when a Co-Op enters a canceled status. To better understand the sequences leading up to cancellation, you can review this post.
When a Co-Op is canceled, buyers should understand the steps taken next by Kickfurther. Our primary goal during any cancellation is to recover the initially funded amount plus any profit originally outlined in the Co-Op. Regardless of timing and circumstances or the specifics of a given business, product, or scenario, our intent remains to minimize any losses.
Since the introduction of our current scorecard in August of 2017, it’s important to note that less than 6% of posted Co-Ops entered any canceled status. Further, when this has occurred, one-third of those Co-Ops finished with users receiving back more than 80% of their original contributions. This number is even higher when you consider the Co-Ops where users were actually able to recover the inventory they funded. Though we strive to use the data available from past and current companies to continue refining our processes to prevent as many poor outcomes as possible, it must be understood that unforeseen events disrupt businesses of all sizes and we cannot prevent all bad outcomes.
Our buyers often ask what Kickfurther does once a Co-Op becomes either troubled or canceled. We always tell our businesses that clear communication with us and buyers, even when the news isn’t ideal, is necessary and allows everyone to understand the situation and take appropriate action.
As noted in the cancellation overview linked above, buyers may sometimes choose to receive inventory to satisfy their claim amounts if the business returns inventory upon cancellation. As has been the case in other Co-Ops, Kickfurther often works with the business owners to present settlement proposals to buyers.
It’s important to note that Kickfurther, like the community of buyers within a cancelled Co-Op, prefers a speedy resolution wherever possible without sacrificing the potential for maximum recovery. However, we acknowledge negotiations,legal actions, and refusal to abide by the terms of our contract can lengthen the cancellation process. We will continue to strive to provide backers with updates as thorough as the circumstances and progress allow during this phase. As always, requests for updates can be made on the Co-Op page, though we aim to proactively provide updates as available.
We understand that no new news can feel like bad news and so we’d like to share some of the outcomes made possible due to any combination of continued negotiations, continued pursuit of debts owed by Co-Op businesses and business owners. and legal action.
To underline the commitment Co-Op businesses exercise toward buyers even when business does not go as planned, our team worked with owners from Cherryvale Farms, Mirage Pet Products, PlugngoElectrixx and Gluten Dairy Sugar Free Lifestyle to secure between 100% and 110% of funds returned to backers.
When Kickfurther mediates settlements between businesses and buyers, we pass offers to Co-Op participants for vote and return results to the business and/or the business’s attorney. While this process often takes time due to the need for sufficient buyer vote participation and further rounds of negotiation with businesses, Kickfurther remains committed to trying to facilitate a process that is beneficial to our users.