Suppliers to Adams have hit out as they claim the kidswear retailer is failing to pay them on time.

Several suppliers said payments have been delayed since Adams was sold to Pakistani group Habib Alvi by ex-chairman John Shannon in September.

One supplier said: “Adams has not paid us an invoice that was due to be paid in October and told us that another due this month would not be paid on time either. They won’t give us a reason why and are not returning our calls.”   

Another supplier said that overdue payments dated back to July. One supplier said “millions of pounds worth of stock” is being held in transit until payments are met and that legal action is a possibility.

Several of Adams’ suppliers were left with unpaid debts when the retailer, which has 125 stores in the UK and Ireland, went through two administrations - in 2006 and 2008.

Adams did not respond to repeated requests for comment.