Coronavirus: Asda cancels clothing orders with suppliers

Asda petrol station

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 order’s value as a “gesture of goodwill”, rising to 50% for already completed orders, according to the Sunday Times.

The move has infuriated its suppliers because products from Asda’s 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 “ridiculous” for a company the size of Asda’s parent company Walmart not to pay for its clothing orders.

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