Value fashion retailer Peacocks has angered some of its smaller suppliers after asking for up to 90 days credit on payment, it is understood.
According to The Mail On Sunday, the request is likely to be met only by larger suppliers who have cash reserves to make the extension financially viable, unlike the smaller suppliers.
Charles Stone managing director of Bandana, which supplies high street retailers including River Island and Arcadia Group, has previously told Retail Week that retailers have had payment terms extended from 30 to 45 days and eventually to 60 days.
They have also put a squeeze on prices and adopted more cautious buying patterns, avoiding orders of massive quantities. Trialling orders before investing had become the norm.
Edinburgh Woollen Mill is to return Peacocks’ product to a core value offer by sharpening prices and realigning product lines as part of plans to revive the value chain.