I got a bad feeling... not just the money they owe but a couple hundred reds still sitting there. I wasn’t real concerned until now..

That truly sucks.

Keith

Translated it for you Mud:

"All your fur are belong to us...."

Lol even what they sold it appears!

Obvious they are a poor risk. Sad but inevitable. There focus I hope is to pay the people they owe. Worry about fulfilling customers as an auction house later.

Got the same email today. Sad times indeed.

That letter is nothing shy of the kiss of death for NAFA in my estimation.
They are requesting us to have blind faith, while offering absolutely no information on what they intend to do about their situation.
They would have been better served to say nothing at all until they have a solid plan.

As alan Jackson would say

Gone country !!! Bet the guy that sent this letter will get paid. Probably a big fat bonus !!!!!!!!!!


Feel for you guys they screwed. Where did the monies from the sales go. Did the purchasers not pay them??/ Smells fishy. So did they take the money from sales then borrow money to pay the trappers that sold. ? That doesn't sound right >>>> Where and why was financing even needed ????

Actually the fur belongs to the lenders.

UPS call tag from NAFA to FHA might be in order about now.

Maybe they had some internal theft (of $$$).

Is that (pursing) ??

Or pursuing new options ??

L@@ks like pursing to I !

I don't understand the money deal, I know there lot Finacing in big companies that I don't understand , I got direct deposit an noway the money go back them, even if things straighen out, how much bussiness are they loosing over this ? Less fur on sales. Smaller quantiles well possibly attract way less buyers. Lower prices because this ? I don't know, if things improve. After hearing this. Not sure what to think about go there. Before company I work for long time, went out, they did wierd things in months before , layoff workers as no money to buy materials until sell more product

Here is one of the things that got NAFA in trouble. At every sale there is a prompt date. This is the date that all accounts SHOULD be settled by.

On prompt date (or just before), NAFA pays every shipper that had fur sell at that sale. Shippers are PAID IN FULL.

According to Conditions of Sale for all buyers, if they are unable to pay their account in full by prompt date, they must make a 35% deposit to hold their purchases. Then they have a certain amount of time to make the rest of the payment. They pay interest on the balance they owe.

Many buyers do not pay for their purchases in full be prompt date. They basically finance their purchases through NAFA. This is standard procedure at all fur auction companies.

So let’s look at some numbers - hypothetical numbers for simplicity sake. Keep in mind these are SAMPLE numbers.

NAFA sells 30 million dollars worth of fur at a sale. Assuming there is a 10% sellers commission and no other fees. That means that NAFA owes the shippers 27 million dollars.

Some of the buyers pay their bill in full - say they pay 10 million in full. The other 20 million of sales is financed with a 35% deposit. That works out to 13 million dollars worth of goods that were bought but not fully paid for by the buyers.

But NAFA still has to pay out that 13 million on prompt date. Despite what manymof you think, NAFA doesn’t have that kind of cash sitting around.

This is where the banks come in. NAFA had a long standing agreement with a major bank to cover this extra 13 million that NAFA has to pay out. This arrangement has/had been in place for a number of years. For what ever reason and without notice, after the bank had paid out whatever money NAFA had in their account, the bank said “ Thats It” and they stopped covering/honoring NAFA checks and thatnis why shippers checks bounced.

NAFA is working tirelessly with other banks to come up with a new arrangement. They are not taking this situation lightly.

No one at NAFA stole your money. They didn’t spend it on fancy cars or luxury vacations. They had the rug pulled out from under them by their bank.

A lot of you still won’t understand the entire situation but it is as I’ve explained above.

NOTE - I am not a NAFA employee. I am a long time customer that is as concerned about this as all of you.

I believe nafa themselves started acting as a bank. Taking deferred money and paying up to 5% interest on it. Then taking that deferred money and lending it out to mink ranches that are now broke.

This is what happens when you run a company on debt. Might get away with it for a while but eventually it’s gonna bite you. It’s very simple to fix. Buyers have a prompt date to pay for their purchase. They do not receive anything that isn’t paid for. Items not paid for by the date set, the items go back up for sale on the next auction. Nafa doesn’t have to finance anything, shippers will always receive good checks, there will always be retained earnings and the business will never be bankrupt.

Mink99 has got it

Seems to me the only explanation on why they wouldn’t have money is that they leant it all out to mink ranches for advances and didn’t make sh&t and now none of them can pay them back and here we are. Prompt date is well passed and all buyers should have paid for goods by now unless nafa was acting as some sort of lender to the buyers as well.

Bob, you're hired as the NEW acting president of NAFA, all in favor say yea!? And for the folks that are long standing buying customers you'll need to buy your own yogurt, fruit and bagels

Bob - that is how it does work, in a way.

Goods do not leave the NAFA facility until paid for in full.

A buyer can pay a 35% deposit by prompt date to have NAFA hold the goods for a certain amount of time. There is a very detailed procedure in the conditions of sale that outline storage procedures- amount of interest, deadlines, time tables, etc. NAFA is bound to honor those conditions as part of their agreement with the buyers. NAFA expects buyers to honor the conditions of sale and buyers expect NAFA to honor their part.

At any sale, there is a certain amount of goods that is not paid for in full by prompt date. Would you as a shipper be happy to get only a partial check for your goods that sold?? Probably not!! The money to make up the difference had to come from some where. We potentially could be talking about tens of thousands of dollars, if not hundreds of thousands. We aren’t talking pocket change.

Change the rules to 75% down and no speculators