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After Going All-In on Amazon, a Merchant Says He Lost Everything

Barak Govani says he was kicked off the site after being falsely accused of selling fakes. Accounts like his prompted a House panel to accuse Amazon of mistreating its merchants.

Barak Govani received a total of 11 emails from Amazon each giving him different dates at which time his inventory would be destroyed if he hadn’t removed it.

Barak Govani received a total of 11 emails from Amazon each giving him different dates at which time his inventory would be destroyed if he hadn’t removed it.

Photographer: Maggie Shannon/Bloomberg

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Barak Govani made a big bet on Amazon.com Inc. earlier this year that he now regrets. He shuttered his New York Speed clothing store on Los Angeles’s storied Melrose Avenue, packed up $1.5 million in inventory and shipped it to Amazon warehouses around the country, putting his fate in the hands of a company that has routinely presented itself to the world as a friend of small business.

Today, the 41-year-old retail veteran is broke and couch surfs between his mother’s home and his sister’s place. Govani hopes to start anew by getting Amazon to pay him for inventory the company destroyed after suggesting his products could be fake—an accusation Govani strenuously denies.  His lawyer in September sent a demand for $800,000—along with invoices to verify his merchandise came directly from fashion brands—and they’re waiting for Amazon’s response.