Jennifer Chong | Co-Founder @ Linjer

TL;DR

Jennifer Chong details a severe business crisis at Linjer: a Chinese factory produced defective leather bags, refused to admit fault, and forced her to pay for the bad goods to release the rest of inventory.

Key insights

• The factory received leather that didn't match the sample, chose not to inform Linjer, and produced bags with it; the defect was discovered at the eleventh hour.
• Rather than send imperfect bags, co-founders accepted a "calculated risk" by paying tens of thousands of dollars for defective merchandise to secure release of good goods.
• The factory owner refused to admit fault and issued an ultimatum: take and pay for everything, or leave it all.