The criticism from the Forum of Private Businesses (FPB) came after the fashion retailer wrote to all its suppliers informing them it would be extending payment terms to 75 days from July 1 this year.
In the letter, New Look managing director of finance and services Alastair Miller said the changes were because of 'increased investment in new space'. The group has recently acquired 34 former Littlewoods stores and is opening stores in France and Belgium.
FPB chief executive Nick Goulding said: 'It beggars belief that New Look has the gall to suggest that its expansion plans should be paid for by suppliers. This excuse adds insult to injury.'
A recent survey of FPB members found that many were afraid to charge retailers interest on late payments because of the threat of losing future business.
The FPB has written to Secretary of State for Trade and Industry Alistair Darling to ask him to make the issue of changes in late payment terms his number one priority.
Earlier this month, Matalan came under attack for demanding discounts from its suppliers. In November last year, the clothing and homewares retailer imposed a mandatory 2 per cent contribution from all its suppliers during the second half of the last financial year. The FPB, which represents a number of Matalan's suppliers, sent a letter to group chairman John Hargreaves demanding action from the company.
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