Local design retailer Naiise has been defaulting on payments to its vendors since as early as 2016.

Naiise founder Dennis Tay, 33, admitted that mistakes were made, pointing to structural issues including the departure of about half of his 100 employees from last December to April.

The company functions as a platform for design brands to sell their products, and it features many local-themed products such as Merlion plushies and T-shirts featuring Singlish slogans.

It was appointed to operate the retail showcase of the upcoming Design Orchard development, due for completion later this year.

The New Paper understands that Naiise has failed to pay at least four companies for their goods.

Singapore company Now & Then, which produces local-themed merchandise, told TNP that it has not been paid since last December.

On Tuesday, jewellery-maker Tessellate.Co, said on its Instagram account: "Is it fair for Naiise to owe us nine months of sales payments since October 2017?"

Yesterday, Tessellate updated its Instagram to say everything had been settled.

A person working with a vendor, who requested anonymity, told TNP that Naiise had been delaying payments since the middle of 2016.

Naiise was founded in 2013 by Mr Tay, who runs it with his wife Amanda Eng, 33, its chief marketing officer and buyer.

Starting with just five suppliers, Naiise now stocks products from more than 1,000 brands from Singapore and abroad in four brick-and-mortar stores here and a fifth in Kuala Lumpur, Malaysia.

I blame the leader, which is me, for not having proper systems in place. Naiise founder Dennis Tay

Mr Tay told TNP yesterday that Naiise faced problems with payments after the loss of key staff as well as a slow transition from a start-up to a full- fledged company.

Admitting that mistakes were made, he said: "There was a divide within the company and a breakdown of processes.

"A lot of data entry was manually done and when people left, the work had to be transferred to others, which led to gaps."

He said Naisse is working with a bank and a financial technology company to look into automating payment processes, with trials beginning next month .

He emphasised the failure to make payments was not due to financial reasons.

"When brands approach me, we immediately settle the problem," he said, adding that the core focus remains the same.

"When I started this company, it was about helping these brands to grow, and that has not changed for me. I blame the leader, which is me, for not having proper systems in place."