Debenhams Group, formerly Boohoo, has warned some of its suppliers that they may experience late payments amid mounting fears that the business is facing a cash crunch.
The retail giant has told a couple of its traders that the company was “running behind on payments” and asked how much stock they could deliver this month without being paid more, The Telegraph reported.
It follows news from June that Debenhams customers were facing delays on receiving refunds on returns.
Debenhams admitted at the time that it had been slow on paying refunds for unwanted items but did not offer an explanation why.
The group revealed late last month it is exploring the possibility of offloading struggling brand PrettyLittleThing, as well as “assessing the long-term options” for its US and Burnley distribution sites as it shifts towards a stock-lite strategy.
It came as Debenhams reported its pre-tax losses had deepened to £263.9m, as group sales fell 12% drop to £790.3m.
A week earlier the retailer announced it had secured a new £175m refinancing deal, which extends maturity to August 2028, replaces a £125m revolving credit facility that was up for expiration in October 2026.
A spokesman for Debenhams told the title: “A junior colleague, in one of our smaller brands, emailed a small number of suppliers to work on capacity planning.”
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