Debenhams demands discounts for paying within 90 days!
Debenhams has been demanding steep discounts for paying small businesses within 90 days – double the industry average – according to emails seen by the Sunday Telegraph.
The British retailer has come under fresh criticism for its treatment of suppliers after it emerged the retailer had demanded steep discounts for paying small businesses within 90 days, double the industry average.
In emails seen by The Sunday Telegraph, Debenhams demanded a series of deductions from a supplier, including a 16.7pc discount on settlement of payment within 90 days. Moreover the retailer insisted in deductions for every bar-coded item that had to be scanned, and a further carrier charge related to delivery of goods.
The industry average for supplier payments is 42 days, according to the FSB.
A spokesman said that the retailer had not changed its terms with suppliers and said its average payment was 60 days.
It has been forecast that Debenhams is to report this week a 19% fall in annual profits to £95.4m as the department store chain has to fight the falling pound pound, higher rental bills and employment cost increases, while sales look set to stagnate at £2.9 billion.
James Salmon from The Credit Protection Association said this “This disgracefully shows the pressure put on SME’s in supply chain of big business, and to impose 90 day terms on small businesses who are fighting to survive is pure bullying from the big boys. To then demand large “early payment” discounts when you pay within the 90 days is outrageous! Paying promptly and on time is a basic obligation, not something worthy of addition rewards”
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