Philip Day has been accused by Bangladeshi clothing manufacturers of taking “undue advantage” of coronavirus to cease payments on millions of pounds worth of stock.
Around 30 suppliers to Day’s clothing empire, which includes brands such as Peacocks, Austin Reed and Jaeger, have written to Edinburgh Woollen Mill threatening to halt production and deliveries over £27m in unpaid bills.
The letter was sent from the Bangladesh Garments Manufacturers and Exporters Association trade body and claimed that Day and his fashion group had taken “undue advantage of the Covid-19 situation”, according to The Guardian.
Day’s retail group is accused of demanding “hefty discounts” from struggling suppliers, cancelling orders and withholding payment for goods already shipped or made.
Please sign in now if you have a subscription or are already registered with us.
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.