In a letter dated May 28 obtained by the Music & Sound Retailer and sent to MI retailers, Wells Fargo Commercial Distribution Finance LLC announced it will no longer finance the purchase of inventory from Pearl Corp., effective July 25.
“After the effective date (July 25), lender (Wells Fargo) will no longer finance the purchase of inventory from Pearl Corp.,” the letter reads. “All approvals for inventory that has not shipped by the effective date are hereby revoked as of the effective date; provided, however, that if lender, in its discretion, nonetheless finances inventory subject to any such revoked approval, such financing shall be subject to the agreement.”
The letter continued: “The above-referenced change shall not affect your indebtedness under the agreement, if any, with respect to Pearl Corp. products financed by lender for you, and you are not released with respect to any indebtedness under any other active credit facility with lender. You should continue to repay lender the outstanding indebtedness due for Pearl Corp. inventory in accordance with the agreement. This termination does not affect any other credit facilities you may have with lender.”
The letter concluded by stating Wells Fargo appreciates the customer’s business and is committed to providing a high level of customer service during this process.