nanyt0618

Probably get a lot more aggressive on your accounts receivables demands. Also, is this type of behavior typical of VC's? I have to assume a lot of people would just have written a check to pay vendors so this sort of bad PR wouldn't be coming up as it isn't that much money for a VC. Unfortunately it seems like a few bad apples here are really spoiling it for everyone.

There's nothing embarrassing about making a profit, but there is something embarrassing about continuing to rack up debts you know you won't be paying. A restaurant owner is taking a big risk in setting up shop - food businesses are super likely to fail as it is. There's no need to make excuses for well-funded companies operating irresponsibly and actually stealing from the small businesses they market themselves as promoting.

According to several former employees, Munchery also stiffed vendors in LA and Seattle when they shut down there years ago. Some of them have still not been paid, even though Munchery raised more money and continued to operate in San Francisco. A vendor in LA was owed 150k, Munchery agreed to a payment plan, and then just stopped paying when they still owed 100k. This is a pattern of not paying bills and continuing to rack up debts without the money to pay it off. The companies that delivered their goods to Munchery as promised shouldn't have to pay for Munchery's dishonesty and poor management.

The COGS and labor on a 15k wholesale order is likely 10k, so not getting paid is a big deal. Also, it's relevant because employees of munchery reported that the company would systematically choose to not pay small women and minority owned companies because they had fewer resources and were thus less likely to fight back.