Quilts, Inc. notified exhibitors today that they will not be issuing refunds for Spring Quilt Market which was scheduled for May 15-17 in Pittsburgh. The event was cancelled on March 17 due to COVID-19.
In an email sent by Rose Reyes, Director of Exhibitor Services, and signed by Founder and Director Emeritus Karey Bresenhan, exhibitors were told that 50% of their payment had already been spent on non-refundable deposits Quilts, Inc. has made and can not be returned. The remaining amount would be rolled over to future Quilt Market events: 25% to for exhibitor fees at Fall Quilt Market in Houston and 25% for fees at Spring Quilt Market in Minneapolis. If an exhibitor can’t attend one of these shows, the fee coverage will continue to roll over until Fall 2022.
“After our reluctant but necessary cancellation of the Pittsburgh Market, we have been working steadily to determine and imagine what’s next,” the email read. It goes out on to emphasize various clauses in the exhibitor contract that legally allow for this financial arrangement.
Change to show cancellation insurance
The email also explains that there would have been funds enough to offer refunds had the company’s show cancellation insurance taken effect. “We have carried this expensive protection for years, including a special, and even more costly, clause to protect against infectious diseases. This insurance would have provided the necessary funds to make refunds, which was its primary purpose,” it states.
“However, when we called March 18 to discuss filing our claim, we discovered that as of January 1, before the Coronavirus hit the U.S. and before most of us were even aware of the danger ahead, the insurance provider had added a waiver of all losses attributable to the Coronavirus.” Quilts, Inc. is apparently investigating a class action lawsuit against the insurance company.
All retailer buyers have had their tickets to the show fully refunded.
Virtual event
Quilts, Inc. is planning an education-focused virtual event at virtualquiltmarket.com for some point in the future, although the date and details have yet to be announced.
Note: The original final section of this article has been removed and posted below as a comment by the author.
UPDATE: April 14, 2020 Quilts, Inc. secured a funder and will be issuing full refunds to all exhibitors for Spring Market 2020. See our story here.
Abby Glassenberg
Co-founder and President
Abby co-founded Craft Industry Alliance and now serves as its president. She’s a sewing pattern designer, teacher, and journalist. Abby has an undergraduate degree in history from Johns Hopkins University and a masters degree in education from Harvard. She’s dedicated to creating an outstanding trade association for the crafts industry. Abby lives in Wellesley, Massachusetts with her family.
I am shocked. So much for supporting the small business owner. I am so disappointed by Quilts Inc.
Wow! Haven’t rewarded them with our money in the last couple of years. Didn’t get anywhere near the expected ROI on my investment so for sure I won’t be going again! I agree, Quilts, Inc should refund all monies!
I am a vendor being impacted by this decision. I operate a small pattern company and this decision hurts my company. So disappointed.
This will hurt businesses in the quilting world across the board. Bad times grt worse!
Linda
Quilts Inc has made a lot of money off both their “not for profit” and for profit businesses. They have said for years they support the quilters. What a farce!
We stopped vending in Houston years ago when it became more of a circus environment with people selling garden hoses and other non quilting related items.
Terrible decision. This hurts the small business. The same business that support you. Does this sound like a wise business decision?
I have never attended due to the steep costs, and now I’m glad. They should offer partial refund in good faith.
If I were Quilts Inc, I would rather keep my reputation than my financial interest in a time like this. I would refund to the best of my ability the retailers and promise the rest in the future. Money can be made back. Reputation can’t. And this is a sullying mark that will forever taint them.
Not to mention … in what world did they think it was acceptable that if 50% of the deposits were already spent on things they can’t get back on, that they have a right to keep the other, admittedly, unspent 50%? Rolling it into future shows just smells of greed.
This is wrong on so many levels but
Believe you me karma will bite you!!!
It obvious is about the money and you know the small guy needs it more. You need to make things right.
As a small quilt shop owner I was a vendor once at Fall Market. This decision is wrong on so many levels. I probably won’t attend another market because of this decision. Sad, sad, and greedy.
Likely is that Quilts, Inc is closing up shop.
Quilts, Inc has been struggling for years. This may well be their death knell.
Bad business move on their part. I agree they should have done their due diligence in seeking alternate coverage when the show insurance carrier added the coronavirus clause. However, many insurers will automatically deny claims and liability for any number of reasons. Any monies recovered in the lawsuit should first go towards making those vendors who were out their deposit money whole. FWIW: What did the Original Sewing & Quilt Expo do when they had to cancel shows in Atlanta and other places? At the local quilt shop where I teach, any classes that I had scheduled were cancelled and students given the opportunity for a refund or receive a credit toward a future class. It was the right thing to do.
This decision will be the final nail in the coffin of Quilts, Inc. Quilters and vendors will NEVER trust them again. I know I will boycott anything Quilts, Inc. is associated with. Well done, Quilts, Inc., you just made yourself a pariah.
So Quilts doesn’t suffer the loss, but the vendors too. This is bad business and customer service, and I would think the vendors would never do business with them again.
Questions: 1) Has Quilts, Inc. applied for US govt relief from expenses incurred & not reimbursed due to event cancellations US govt as many businesses have? If Quilts, Inc. applies & gets $$$, then part of that money should go to you.
2) In fact, have all the small businesses/independent contractors who are members of The Craft Industry Alliance applied (at their local banks thru recent SBA legislation) for forgivable loans to cover non-reimbursed expenses & loss of income incurred due events cancelled due to virus? You should do this– the monies were made available for situtations such as yours.
Regardless, legal advice is needed & a class action is a good idea. Suing Quilts, Inc. AND their insurer would be the route to consider first. Both organizations are probably very sensitive to bad/mean business practices publicity.
Hi Catherine, If you read the email from Quilts, Inc. you’ll see that they mention they’ve applied for emergency relief loans from the government. There’s no indication that the money they receive if they do receive it, would go to the exhibitors.
Here at Craft Industry Alliance, we held a webinar taught by a Lender Relations Specialist at the SBA on Thursday about the grants and loans available to small businesses.
In the email Quilts, Inc. states that they’re considering a class-action lawsuit against their insurer. I don’t think there’s the basis for a lawsuit among exhibitors because the exhibitor contract terms allow for this course of action.
This is how to write your own death certificate!!!
Quilts Inc. Operates on a “Business to Business” level. There are stipulations in the contract. Yes, I wish they bought the insurance, and could pay back everything. They are offering 50% in compensation. Sometimes, in business, it is a different perspective. For example, we do not insure every shipment we make to a distributor, it would cost too much, and the value is so high, if it were destroyed It would be a claim with our insurance company. Many business see the cost of the booth as a small part of the whole cost of doing market. I know the rental van, shipping, staff, all add up. I also know we have a glutted industry, and and the stars and leaders have shifted a lot in the last decade, and will shift more in the next decade. We are in this together.
They aren’t quite offering 50% in compensation. They are offering 50% in credit towards future booths at shows, divided between two future shows.
So shit rolls downhill… What’s going on uphill? Has the venue not refunded Quilts Inc. the money that was invested in holding Quilt Market? I’d want to know what was going on with that if I were a vendor.
Yes. It is as simple as shit happens. And Covid 19 is some serious shit. Excuse my French…
If you read the email, 50% of exhibitor fees have already been spent on non-refundable deposits to the venue, etc. But the other 50% is available. Rather than refunding, they are rolling it over – 25% to cover booth fees for Fall Quilt Market and 25% for Spring.
Poor, poor judgement. Its very simple. Do not use Quilts Inc. again. Perhaps its time for other venues besides markets. Only my opinion, but I sure as heck would not sign up again with a company that cannot/will not provide refunds. Especially in this particular world wide situation. And their reasoning sounds suspicious.
They should return the other 50 % and not space it out between two shows. Many vendors will not be able to sustain all the losses. I guess they are hoping they just get to keep it. I won’t be traveling to Houston because they are doing this.
The insurance company knew to include the Coronavirus in January? I guess the insurance company listened to the experts to protect them from financial loss. They took action in January.
Remarkable.
Yes, many insurance companies did.
This is not a reasonable response to small business. They did not cancel on you, It will NEVER be on my to do list ever again, and neither will it with my group of quilters. Yes, we all go at the same time. Last count was 10 women, who buy.
It’s sad on all levels. Quilts, Inc has a long history of making a lot of money (that’s ok; it’s not against the law in a capitalist economy). If they make millions (and Karey certainly has), then I assume they share it with those who are part of it. But, as a teacher, I long ago decided to NEVER teach for them. Why? They take no risk; they ask me to pay for ALL my expenses; I only get paid BY THE STUDENT. They overpopulate the teacher pool – hey, if it doesn’t cost them anything to bring me in, then they can have all sorts of teachers! I do not celebrate someone taking a financial nose dive. This shutdown has cost even me 1/3 of my annual income because of numerous cancellations. I’ve been in this professional quilting industry for 30 years and the writing is on the wall. There’s a lot to be said for: “Do unto others what you wish to have done to you.”
Interesting! I have taught for Quilts Inc, AQS and Mancuso. Never have my expenses been paid for. I have always been paid by student by each show promoter. I have ALWAYS made money from each class. I do not stay at the host hotel. I do not eat/drink out with a large group every night at the shows. I market the heck out of my classes to ensure high registration numbers. I ensure that how I travel, where I stay, and what I eat leave me a great profit. I would gladly teach for each of the promoters in the future never asking them to run their business the way I want them to. Simply agreeing to the terms they set forward. I agreed to the contract by Quilts Inc that stated no refund was in order. Therefore the credit toward future booths seems quite fair to me as it is more than they are contractually obligated to. I appreciate their professionalism and honesty in their letter to us vendors.
Thank you for your level head and years of service yo the quilting world.
Quilts Inc. Vety disappointing! What a hardship on vendors. They should cover this one – especially when notified in January by their insurance carrier. Disappointing. I would never attend a Quilts Inc event except the Houston show is outstanding. Had two terrible sessions a couple years ago & I am not a complainer but when I did voice my concerns no acknowledgement even. Making millions on us as quilters. Can’t believe they also ding iah their teachers. Sad sad. Should be investigated.
In my opinion Quilts, Inc. is making a mistake in this decision. If it’s at all possible to issue partial refunds, they should. Here’s why.
The quilt industry, like many niche industries, is made up of thousands of small businesses operating in tight margins. To hold this money and allow it to only be used to exhibit at this particular show in the future is too constraining and will present a hardship for many of them.
It’s likely that in October some exhibitors will still not feel comfortable traveling or exhibiting at an event with large crowds. Others will be strained financially due to current circumstances and will not be able to afford to attend.
Just as the fabric companies are accepting canceled orders and extending credit to the retailers right now, it would go a long way for the trade show to be an upstanding citizen at this moment and extend partial refunds.
In addition, surely the insurance company notified Quilts, Inc. when they added the coronavirus waiver to their show cancelation policy. That should have raised alarm bells. It’s was Quilts, Inc.’s responsibility to seek out additional coverage back in January. Quilts, Inc. should own that mistake and make it right, not pass the loss onto the small businesses that exhibit at their shows.
I think many companies are questioning now whether registering for Quilt Market or any trade show, presents more potential risk than reward.
Additionally, this is Spring Market. A lot of smaller vendors don’t go to Houston for Fall Market, and Spring Market moves around giving local people a chance to vend closer to home. They would not likely be planning to go to Houston in the Fall, even if it does happen, and I don’t know where Spring Market will be next year, but probably not near Pittsburgh.
Spring Market 2021 is in Minneapolis.
I’m wondering what their intention is for the July Festival show in Long Beach. As far as I know, vendors have not heard anything and many have paid for a booth or placed at least a 50% deposit.
I live in Long Beach and I seriously doubt there will be a lifting of restrictions to the point of allowing tens of thousands of people to come here for a public consumer show at that time.
If I were them, I’d get ahead of this right now and cancel the show now so as not to leave vendors hanging. Not to mention the fact that I doubt people will be ready to attend or even vend so soon.
My strategy would be to request the city to refund any deposit $ placed for the convention center with the stipulation that funds go first towards refunding vendor deposits.
This can be done through writing to the city convention bureau, the mayor, and all city councilmembers and asking for an agenda item to be placed ASAP on the next council meeting agenda.
Just my 2¢.
I am saddened and not so shocked. This will hurt their future shows, but then again what and how we will exhibit is a whole new story. I predict we will be sharing our beautiful products virtually with a supportive old fashioned direct mail component.
I am in multiple industries including apparel, craft and gift and while product development has not come to a halt, we are working on new and innovative ways to get to our customer…. I send love to all you small and larger business who are working through this very difficult time. xoxoxo
They changed their minds and did refund our booth fees. I got my check in the mail today.
Shawn York
RustyCrow.com