Amex sets debt collectors on ex-Boo staff
Shafted by the small print
Former Boo.com staff are slowly discovering how much they have been shafted by their ex-bosses.
Yesterday's Times newspaper revealed that 17 ex-employees of the failed online sportswear retailer may be forced to pay for debts run up on company credit cards.
The individuals, ranging from the founders of the company to junior fashion buyers' assistants, got corporate American Express credit cards from Boo. But it seems the company, which crashed last month, had signed a joint liability contract with Amex which made staff liable for the debts if the company was unable to cough up.
Now Amex is trying to ply the money owing, thought to total around 15,000 according to The Times out of the employees, and has sent threatening letters to all the cardholders via a debt collection company.
While the cards were mainly used to fund hotel and corporate entertainment, some former Boo staff were also said to have been using the cards for personal purchases. Their favourite haunts were the bars and restaurants around Boo's Soho, London offices with the dotcommers patronising one bar in particular called The Midas Touch.
"There were buyers who owed more than the most senior executives in relation to their salaries; one former Booer blabbed to The Times.
So now what? To be fair, Boo former human resources co-ordinator is trying to persuade Amex to hound former staff only for their private purchases. While it looks like Boo's three founders, no doubt party to the Amex agreement, will fall victim to their own small print and have to pay their own bills in full. ®