Online fashion giant Boohoo has asked suppliers for a 10% discount on both its delivered and undelivered orders in a bid to control costs, according to a report in The Times.
A Boohoo Group supplier said they had received a call “demanding” a discount on any outstanding orders.
The supplier told the newspaper: “It turns all orders produced into losses. This is major self-harm. They are struggling to find suppliers and now they are screwing the ones they have.”
This news follows the backlash Boohoo received from suppliers last year when it extended its payment terms from the original 30-day period to 60 days.
The announcement comes amid the fashion retailer’s battle with declining sales after it reported that group revenue declined by 11% to £637.7m for the four months to December 31, 2023.
Boohoo also recently unveiled plans to axe around 100 jobs at its London head office after confirming “a consultation phase is underway” and blaming the redundancies on “times of economic uncertainty”.
No comments yet