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Online Furniture Purchase Goes Sour

Consumer reporter still waiting for loft bed

By Lisa Wade McCormick
ConsumerAffairs.com

March 12, 2008

Lisa Wade McCormick

Even a consumer reporter can get ripped off. Just ask me.

I've waged a lengthy battle against a furniture store that repeatedly pushed back the delivery date for a loft bed my husband and I ordered for our son.

More than six months have passed since we placed that order.

The bed hasn't arrived. And now, the furniture store is closing its doors.

How, you may wonder, did a supposedly "savvy" consumer reporter get into this predicament? That's a question I keep asking myself. After all, I thought I followed all the consumer protection rules.

• I researched the company.
• I asked tough questions.
• I read the contract.
• And I paid with a credit card to give me added protection in case any problems developed.

Paying with a credit card was the one smart move I made.

The reporter in me, however, wonders what red flags I missed throughout this debacle. Or did I ignore any warning signs because our son wanted this bed? Let's rewind to August 2007. That's when this fiasco started.

Kids Quarters • Manufacturer Comes to the Rescue of One Kids Quarters Customer • Little Satisfaction for Kids Quarters Customers • Bankrupt Kids Quarters Takes on a New Identity • Online Furniture Purchase Goes Sour • Consumer Complaints --- • More about furniture ...

While redecorating our son's bedroom, we learned he wanted a loft bed. We found one he liked on the Internet – from a Florida company called Kids Quarters, Inc.

I was leery of doing business with an online company instead of a local one. But the company's Web site stated it wasn't an exclusive online business – it had showrooms in Altamonte Springs, Orlando, and Tampa, Florida. I've also talked to several people who have ordered furniture online without any problems.

So, on August 15, 2007, I called Kids Quarters, Inc. A saleswoman told me the bed would take eight weeks to deliver because it was a "special order." That timeframe didn't alarm me. I'd placed special orders before and knew they often required more time.

When the company sent me the sales order, however, I immediately noticed it stated the delivery date – or "estimated lead time" – was now 15 weeks.

First red flag

Was that a red flag?

I asked the saleswoman about the change. She downplayed my concerns, saying the 15 weeks was an estimate -- a worst-case scenario. She also led me to believe our son's bed wouldn't take that long. We weren't in a hurry so I placed the order.

Before we could finalize the sale, the company demanded full payment in advance. Bells and whistles immediately sounded.

I told the salesperson I don't do business that way and offered to pay half now and half on delivery. She refused that payment plan, however. Our son's bed, she reminded me, was a special order.

After much discussion, my husband and I reluctantly agreed to proceed with the order.

What were we thinking? How could a veteran consumer reporter make such a glaring mistake?

Don't think I haven't asked those questions a million times in the wake of this debacle. But I knew our credit card company would protect us -- and our money -- if we had any problems down the road.

Those problems surfaced weeks later -- when the company missed its promised delivery date. There's a reasonable explanation, right?

I called Kids Quarters Inc., and a representative said our son's bed was on back order. But he assured me the bed would be finished in another few weeks.

Time passes

Those weeks came and went. The bed never arrived.

I called the company again on December 7, 2007. This time, the company told me our son's bed wouldn't be finished until after the first of the year.

When I pressed for a specific date, a representative said the "end of January." That's more than five months after we ordered the bed.

I suddenly felt a gnawing sensation in the pit of my stomach. Was I getting a run-around? Was this company trying to rip me off?

My reporter instincts immediately kicked in. I demanded to speak to a manager.

The company's representative sent me to Monique Sola, the store's general manager. I later discovered she is married to the company's president, Antonio Sola.

On December 7, 2007, I left Ms. Sola a message and sent her an e-mail detailing my concerns. She never responded. I repeatedly followed up, but she never returned my calls or messages.

I knew I was getting ripped off. But I wasn't going down without a fight.

Call for help

I called for consumer back-up – the Missouri Attorney General's Office. That office repeatedly contacted Kids Quarters, Inc. about my concerns. The company, however, ignored Missouri authorities – and only returned one phone call.

"They avoided questions at all costs about your situation and other Missouri consumers," said the investigator handling my case. Pressure from Missouri authorities, however, convinced Kids Quarters to finally contact me.

"We are aware that you and your family have been waiting for quite some time to receive your furniture…" the company's Monique Sola wrote in a letter I received in late February. "Unfortunately, we are unable to fulfill your order through our normal distribution process due to our present financial situation."

The letter, however, stated that Kids Quarters, Inc. would refund our $1,600.

"Any payments/deposits made to Kids Quarters through your credit card company will be credited back to your credit card with the use of this letter," Sola wrote.

We've repeatedly contacted our credit card company, but Kids Quarters, Inc. never issued a refund. Our credit card company, however, has indicated it will cover our loss. In the meantime, Kids Quarters, Inc. continues to ignore my calls and e-mails.

Going out of business

ConsumerAffairs.com has now learned the company is closing its doors – and leaving behind a trail of unhappy consumers.

The Florida Attorney General's Office has received 17 complaints about Kids Quarters, Inc.

The Better Business Bureau of Central Florida has 96 complaints about the company – 53 are about delivery problems.

ConsumerAffairs.com has heard from consumers such as Aleksandr of Yorktown Heights NY.

"I purchased furniture for my daughter from Kidsquartersonline.com and paid about $2595.00 The furniture was supposed to be delivered within 6-8 weeks. After 8 weeks I called, and they said the estimated day for the delivery would be November 26, 2007. When it did not happen, they said December 24, and then December 28," she said.

"On December 28, 2007, Edward Gonzales told me that it might happen in January, but they cannot guarantee anything. I paid in full, my child has no furniture to sleep on or place to put toys in the room, no desk for homework."

Manufacturer's response

Berg Manufacturing -- the maker of our son's bed -- is convinced the number of consumers who've paid for merchandise they haven't received is even higher.

"I would estimate there are more than 100 customers who are in the same situation as you are," said Almog Lieber, vice-president of marketing for Berg. "This was a big company that did a lot of business."

Lieber's figures, however, only reflect the consumers who ordered Berg Furniture. Kids Quarters, Inc. worked with nearly 90 manufacturers.

"What's happening with Kids Quarters is they were a good dealer -- they weren't just Internet, they had three showrooms -- but they slowly started to lose money," Lieber said. "They were OK until the last six months. Then things got a little out of hand. When they got toward the end of the year -- when their financial situation caught up with them -- they could not fulfill orders."

Lieber confirmed Kids Quarters ordered our son's bed on August 24, 2007. "But your order said 15 weeks for delivery. We knew there was no rush on it."

When it came time for Berg to make our son's bed, Lieber said, Kids Quarters could no longer pay its bills.

"We never got paid (for your bed)," he said. "They placed the order, but never paid us for it. And if we don't get paid, we don't ship the order. That's what happened. It's unfortunate."

Berg, however, said it will honor Kids Quarters, Inc.'s contracts – not just ours, but all consumers in the same situation. Specifically, Berg agreed to make and ship the furniture for the same price customers paid Kids Quarters, Inc.

"We have a strong commitment to the end users – the consumers like yourself," Lieber said, adding the agreement will cost his company thousands of dollars because of increased shipping and production costs. "We're trying to do what we can to help consumers. But we cannot help the people who paid with a debit card, check, gift card, or who put down deposits. Those people have lost their money.

"You're lucky," he added, "because you paid with a credit card and you will get your money back."

Missouri officials agree. They advise consumers to always use a credit card for purchases like these. It's the best protection consumers have if problems arise.

Missouri's case against Kids Quarters, Inc. remains opens.

The Florida Attorney General's Office hasn't opened an official investigation against Kids Quarters, Inc. But a spokeswoman said consumers with complaints about the company should contact her office's Fraud Hotline at 866-966-7226 (for Florida residents), 850-414-3990 (for out-of-state residents), or online at www.myfloridalegal.com.

In the meantime, we've decided to order our son's bed directly from Berg. The only glitch is Berg wants full payment – in advance. The company would not let me pay on delivery.

"You are not first person who has asked about that," Lieber said. "But we have no way to collect COD (cash on delivery). For someone in our delivery range, I could do COD. But I can't with everyone.

"We've had problems when we've tried to deliver merchandise COD," he added. "We've had experiences in which consumers tell the drivers not to make the delivery. So we produced the furniture, tried to deliver it, and now can't get our money."

Lieber assured me his company would make and ship our son's bed within two weeks. He also reminded me that I had extra protection because I paid with a credit card.

"If you don't receive the furniture, you don't have to pay."

He added: "This is an unfortunate situation because problems like this give all of us (in the furniture business) a bad name. And now you've had a bad experience."

Let's hope I don't have another one.

I'll keep you posted.

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