Pennsylvania Sues 2 Online Furniture Retailers

July 22, 2014  by in Furniture Retailing, Industry, Legal   

MIG Enterprises, operating under the name Furniture XO; Salada Enterprises, operating under the name Furniture PM;  and their owners Matthew Kodesh and Nellie Tsan are all named in the action.

Attorney General Kathleen Kane said the companies took money from consumers on their websites and never delivered the furniture.

According to the lawsuit, Furniture XO suffered cash flow problems and used money from new consumers to pay for orders they placed to fulfill orders from earlier customers or to provide refunds. The lawsuit goes on to allege the owners then opened Furniture PM in an attempt to fulfill outstanding orders from Furniture XO and to provide refunds to the consumers.

The lawsuit alleges the defendants "never recovered from the cash flow problems and in many cases failed to submit the furniture order to the manufacturer or distributor, failed to deliver the consumers' furniture and failed to provide refunds to the consumers who paid for furniture, but did not receive it."