Rita Sakr, owner of Wildrose Florist, says Ready Flowers owes her $22,500. She now works out of her garage. Credit:Steven Siewert "I've spoken with the ACCC, my solicitors have sent a letter of demand and I've sent international debt collectors. I don't know what else to do." Fairfax Media this week revealed consumer watchdogs are considering taking joint legal action against Ready Flowers - run by Perth man Thomas Hegarty in Hong Kong - after a deluge of complaints about the non-delivery and poor quality of Valentine's and Mother's Day bouquets. Florists said they had ignored or rejected orders relayed by Ready Flowers because it was taking cuts so big - as large as 50 per cent - it hurt their business. A growing number are also severing ties with the "order gatherer" business because it has stopped paying them. Fairfax Media is aware of 23 florists across Australia collectively owed $188,000, sending some of them broke.

The Ready Flowers website garners clicks by its heavy use of Google AdWords and other pay-per-click advertising. Amounts owed range from $240 for Priceless Memories in Albion Park to $50,000 for a Melbourne boutique that has asked to remain anonymous. Karlos Hess from Korumburra Florist in Victoria said it was exhausting chasing the $1447 owed because Ready Flowers was based in Hong Kong, where it moved from Perth in 2008 to accelerate its expansion. Ready Flowers managing director Thomas Hegarty says his business processes 250,000 orders each year in Australia. "Once they went offshore, you're kind of stuffed for options in terms of chasing them up, that's what the directors are hiding behind," he said.

"It's bad enough what they do to the industry in terms of turning $100 they've received for an order into $50 for a florist who also has to cover delivery and other expenses." Created in 2005, Ready Flowers has grown to process 250,000 orders in Australia each year by luring customers with at least half a million Google AdWords and creating landing pages for every suburb to which it delivers, giving customers the impression they're using a local service. Mr Hegarty, who is believed to be attempting to sell the company and moving to the Philippines, has not responded to multiple requests for comment. In March, an ASIC notice of the winding up of Ready Flowers Pty Ltd was lodged at the Supreme Court by DSS Law on behalf of a Townsville florist attempting to recover $26,626. It's understood the application was dismissed by consent because it was against Ready Flowers Pty Ltd, a "transaction processing company" sold by his parents Peter and Deborah Hegarty to Ready Flowers Ltd in Hong Kong in 2009.

A husband-and-wife florist team in Perth launched court action two weeks ago against the company in a bid to recover $2000. They are now settling the case out of court. At present, the flower retailer claims to serve customers in 172 countries through its worldwide network of 2000 bricks-and-mortar florists. Social media forums such as Whirlpool and product review websites are littered with complaints, with customers around the world sharing horror stories of non-deliveries, wilted flowers and struggles to obtain a refund. There appear to be creditors in China, Korea and France. Concerning "order gatherer" businesses, Joh Dickens, president of the Professional Florists Association of NSW, said florists lose out because they barely make a profit from the order and risk ruining their reputation.

"Say the customer has paid them $80 for flowers, then they'll come to us saying can you do it for $50? And it's not worth it for some businesses, who have to produce a bunch worth $80," she said. She warned consumers to avoid the business, saying they risked receiving sub-standard arrangements. NSW Fair Trading said consumer watchdogs across Australia are considering taking joint legal action against Ready Flowers for breaching consumer law. Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman, said she has so far dealt with one complaint in relation to Ready Flowers. "We will of course monitor the situation concerning this online retailer, and certainly encourage those small businesses who believe they have been unfairly treated, to come forward and seek further advice about the assistance available to them," she said.

Robyn Hobbs, NSW Small Business Commissioner, said due to the confidential nature of the dispute resolution service she couldn't name specific businesses, but she encouraged affected businesses to step forward. "When a small business in NSW is owed money from a supplier or is experiencing a commercial dispute, we help work toward a solution, such as facilitating a negotiation to recovery monies owed," she said. Small businesses can seek assistance in NSW by calling 1300 795 534, emailing we.assist@smallbusiness.nsw.gov.au or by visiting smallbusiness.nsw.gov.au. Do you know more? ehan@fairfaxmedia.com.au