Following the Solus statement issued earlier today, GTN Xtra put the following questions to the company, and here are the responses:
GTN Xtra: Who are the 3rd party suppliers that retailers can buy their stocks through Solus now?
Solus: The only accounts not trading with Solus as of today are Bayer and Scotts. The vast majority of other major accounts, including Fiskars, Town & Country, RSPB and Neudorff are still trading with Solus.
GTN Xtra: Can we report that Scotts products are still available for delivery in the short term?
Solus: Yes. Solus still has Scotts products in stock and is continuing to supply and take orders on Scotts stock held
GTN Xtra: When exactly did Bayer stop using Solus?
Solus: Officially today (Monday)
GTN Xtra: What was the tipping point that caused negotiations with Scotts to break down?
Solus: The details are confidential but Solus can confirm it was not part of the due diligence process and a last-minute demand which Solus thought unreasonable.
GTN Xtra: Why did the distribution agreement with Solus not get renewed? This is a fundamental one for people to understand as they are thinking Scotts pulled out of distribution because Solus may be in trouble...
Solus: Scotts had plans for going direct to market without Solus for several months preceding the failure of the talks. Clearly the decision to move away at peak season creates significant challenges for Solus as well as our shared customer base.
GTN Xtra: What activities are the Solus sales team engaging in to re-assure customers of continued supply etc?
Solus: Solus reps are doing what they should do – reassuring customers, taking orders, offering promotions and answering questions. The sales team is addressing the issues in a structured and responsible way. Scotts instructed their salesforce to brief customers before the negotiations with Solus were concluded: the Solus team was in the boardroom negotiating when Scotts reps were telling customers the deal was off.
GTN Xtra: Lastly, in what capacity have Grant Thornton been engaged? To find a buyer for the business or as some may jump to conclusions to be administrators.
Solus: Perhaps an understandable conclusion but Grant Thornton have been engaged solely to help build a strategic direction for the business and follow through on advances from interested companies.
