NUKOTE, Our major supplier of OD Brand toner and cartridges has just dropped Office Depot. Rumors are swirling about Depot payments to NUKOTE being over 180 days.
Our store is in panic mode as corporate will not give us answers as to what we can sell when our already low investory runs out.
Word has it that this was a blindside to Office Depot management.
We do not have a plan for this, Yikes!
Investors are writing-off office supply retailers -- and the sector was led down on Wednesday by Office Depot (ODP Quote), which was downgraded by Moody's Investor Services.
The investor services firm cited concerns about the tough economy and Office Depot's weakening credit, sending shares tumbling 16% to $3.
Run while you still can!
Another Quote from you thats erroneous:
"and second their cartridges are re manufactured using recycled parts as they are a big recycler as you stated".
I do state they are a big recycler, they do not reman, asked you for a link or model and you did not provide. You use poor rhetoric and obviously do not know the difference between recycle and remanufacture. Again, cite an example of a HP reman or I say you are expounding on something you obviously know nothing about, otherwords, BS. I hope you do not work for Depot with that poor amount of knowledge about the most expensive office supply item (Toner Cartridges) in today's office.
I have been reading the posts on the NuKote situation and laughing. One says NuKote shut them off for credit, another says NuKote didnt ship, a third says NuKote has quality problems, still another says NuKote can't deliver. Really it is a joke. The relationship has been damaged. Office Depot obviously got caught without a backup plan, but while all of this has been beaten to death on these boards, the stock has gone up a dollar.
It is obvious that there are some shills for Office Depot posting on this board, and some shorts grasping anything to drive the price down to cover, but it has no material effect on the stock price. This is the Yahoo boards, not a backroom on Wall St. Can posters please get back to discussing what they actually know about? I, for one welcome the postings of the ODP employees. If they are bitter, I put that aside and look at the content.
I believe the economy is starting to turn upwards, consumer confidence is climbing, unemployment may be easing and inventories are down so companies will need to buy products. I have been hold on this stock since the free fall because there is still a lot of positive ( store locations, contracts, brand equity, International distribution) which offsets questions about the current management. But please, enough about NuKote!!!
The spinmysters at Depot are trying desperately to put a happy face on the Nukote situation but it is impossible. Nukote stopped doing business with Depot. Depot was caught without a back-up supplier. Period - end of story. Depot was fired and it is going to take some time for depot to arrange for a new supplier or probably suppliers to take over. Allot of profit dollars are going down the drain for Depot while they look for new suppliers.
ODP was trying to cheat NuKote through deceptive return practices. They were fired with no replacement vendor in place! The vendor community in the office products industry is getteing wise to these guys (finally). Screw the vendors while screwing your customers is not a long term model for success. This fish stinks from top to bottom. Run while you still can.
First let's be clear- my reference to HP making a reman for a private label was more about the fact that anything is possible in this business climate-I didn't say they would or did, and second their cartridges are re manufactured using recycled parts as they are a big recycler as you stated. Once you produce a cartridge with a used outer shell (and some internal parts) you have re manufactured the product even if many of the other parts are new and is clearly stated on the box unless they have changed their packaging recently. Since I will be meeting with a HP rep today who is a friend of mine- I will ask but already know the answer. What is it that you are getting at with your line of questioning? ODP will continue to offer re manufactured cartridges under the Office Depot Brand and who cares who makes them as long as they work and comply with specifications comparable to the OEM? Hp will continue to be one of Depot's largest vendors as not everyone will buy private label remans.
"The side of almost every HP box says-remanufactured from recycled materials and that is remanufactured is it not??"
I can't find a single one that says that? I am very interested to see a stement about remanufactured not a reference to recycling. Would you kindly provide a part number or did you just recall from memory that statement? Here is a hi-res link to one that does not say it, but does show a recycling symbol: http://content.etilize.com/1300/1010542545.jpg
I stand by my statement that as far as I know HP proper does not remanufacture cartridges, but they are a great recycler of materials. They don't private label for Staples, one of if not their largest client.
Meaning that most HP cartridges are made from recycled materials. The side of almost every HP box says-remanufactured from recycled materials and that is remanufactured is it not?? I am sure there are better than GRC- I just threw that out there because I don't know. ODP will have specifications that the cartridges and ink jets meet so whoever can do that, fulfill the supply chain without disruption, at a cost that gives Depot an edge- you know the rest.
I am not sure how you come up with this unless you are refering to the slight amount of recycled plastic in some cases on laser cartridges. IMHO: HP does not remanufacture toner or ink cartridges in the US.
"maybe even HP starts putting ODP's name on their remans...which most are anyway".
Honestly there are better suppliers than GRC for compatible cartridges. Also, you might want to check some interesting comments on this blog.
It looks like someone from Nu-kote tells a different perspective......