Supermarket chain Asda has become the latest retailer to turn up the pressure by cancelling orders and reneging on full payments to its clothing suppliers.
The retailer wrote to its clothing suppliers last week to say they would be paid just 30% of an orderâs value as a âgesture of goodwillâ, rising to 50% for already completed orders, according to the Sunday Times.
The move has infuriated its suppliers because products from Asdaâs clothing range George are on sale across its store estate, which continues to operate during the ongoing coronavirus pandemic.
One supplier said it would be âridiculousâ for a company the size of Asdaâs parent company Walmart not to pay for its clothing orders.
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