SAP reseller's system never worked, a retailer alleges. It cost over $2 million.
Gordon Companies, the family-run owner of Christmas Central, Christmas.com and Northlight, has filed for Chapter 11 in the Western District of New York, Retail Dive reported.
Founded in 1977, the company lists Target, Walmart, Amazon and Home Depot among its retail partners.
Earlier this month Gordon filed an amended complaint against Vision33, an SAP reseller and implementation partner. Gordon alleges it paid more than $2 million for an ordering and warehouse operations system that "never performed the function for which it was bought." The companies began working together in 2017. Gordon abandoned the system in 2021.
The complaint describes years in which the system could not keep up with peak-season orders. Gordon says it had to suspend sales on some marketplace channels. Target imposed a one-week shipping delay on its listings.
Retail Dive says at least some of the retailer's problems were related to the abandoned system. Vision33 did not immediately respond to its request for comment. These are allegations, and no court has ruled on them. Inc. reported on 17 September that a cyberattack also hit Christmas Central at peak season.
Did your last go-live test run at peak-season volume, or at the volume the demo used?
Sources
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