I'm out $10k after paying an OEM to make blade blanks... no knives, no refund after 10 months

[REK Knives]

I'm posting this here with permission from Stacy E. Apelt - Bladesmith as I know many of you guys don't read the GBU threads. I want other knife makers to be aware of what has happened to me so you can hopefully avoid the issues I have gone through over the past several months with Schenk Knives.

https://www.bladeforums.com/threads/i-paid-schenk-knives-10-000-months-later-no-knives-no-refund.1964849/

** Please keep any comments in the GBU thread , not here in the Shop Talk thread - that is not what this place is for.

Since some people who read this aren't familiar with me or my business, I will give a brief overview. I am a full time knife maker and have been since 2015. My business is owner operated (by me) with no employees. I contracted a company (Schenk Knives in Idaho) to make a production batch of one of my fixed blade designs (250 fixed blade knives for me with my logo on them) - this was a turn key service with an estimated completion date of early October, 2023. I lined up dealers for the fall of 2023 release based upon estimated completion dates by Schenk. 50% of the batch price was due up front so I wired Schenk Knives $10,042.92 on 4/13. In the summer of 2023 the 'CEO' of the company (Zane Schenk) informed me that my knives were lost, then changed it to say they were delayed getting into production, only to again say they were indeed lost in November which was AFTER the expected completion date!

Initially Zane took ownership of the problem by admitting they had failed in multiple ways. It has now been approximately 10 months since I paid the money to Schenk Knives and I am out the product and my money. Zane quit responding to my inquiries in November after I demanded a refund... until I posted publicly about this on Bladeforums about a month ago. Since then he has stated that he will refund the money although I have yet to see even $1 to show that he's serious - all I have received so far is what seems to be empty promises. Initially Zane took responsiblity for their failures and said he was going to make things right but now he is putting everything in the "owner's" court and saying he can't make certain decisions (like refunding my money). However, when I request to speak to the 'owners' they won't contact me so I'm in a bind.

Wanted to get the word out, thanks guys.

 

[FredyCro]

I'd check on their assests/financial standing and proceed with legal action. Make sure to also claim damages for lost profit.

 

[Cushing H.]

thanks Josh. I’ll post a comment here, but keep it general so should be pertinent to shop talk.

supply chain is a tough thing (we got a glimpse of that with toilet paper at the start of COVID). Suppliers will make lots of promises .. which will affect both your financial status and potential delivery dates. My recommendation is to Take all that with a huge grain of salt. If it involves a lot of money, or is time critical, first do your research on that supplier (word-of-mouth, recommendations from folks you know, etc) before you commit. People will *say* lots of things in pursuit of a buck. They might really be trying, but too inexperienced or ineffectual to actually deliver. Caveat emptor.

 

[Way-Barney]

Legal avenue is most appropriate. and surprised that you are not down that avenue already, use the 10k for the second payment to recover the first. and no win no fee lawyer. The legal letter for recovery may work on its own.
7 day notice to pay before proceedings, they might take the piss because you have not already done that.