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Debenhams accused of demanding suppliers reduce bills

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High street retailer Debenhams has been accused of insisting that its suppliers offer it a discount for speedier payments over the Christmas period.

According to a letter, which has been seen by the Sunday Telegraph, the clothing and home-wares seller has asked its suppliers for a reduction between 1% and 2%, in return for which it will pay them between 30 and 60 days sooner than usual.

It reads: “The working capital benefits associated with early payment are subject to suppliers agreeing an additional discount on the value of the associated invoices.”

The period for the earlier payments is between 24th November and 26th May next year.

It comes just two years after the chain demanded some of its suppliers reduce their bills less than two weeks before Christmas.

A person close to the company told the newspaper the letter was “a completely optional scheme” following requests from its suppliers.

 

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Bella Palmer

The author Bella Palmer

Passionate about the Investment Market. I am also a keen Investor myself. Love to travel and dance.