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.
In response, the Forum of Private Businesses (FPB), which represents a number of Matalan's suppliers, has sent a letter to the Matalan group chairman John Hargreaves demanding action from the company.
FPB chief executive Nick Goulding said: 'Many of Matalan's suppliers have not agreed to these deductions. As a result, suppliers are still showing the amounts Matalan has underpaid as outstanding. Matalan may well have taken these charges as income in their statutory accounts, which is incorrect, and not in accordance with accounting standards, because they do not have the agreement of all their suppliers to do so.'
In the letter the FPB said it would be referring the retailer to the public authorities and its auditors unless it received a satisfactory response by 5pm on May 10.
A Matalan spokeswoman said: 'We have not received the letter yet, but if the FPB want to raise an issue with us then we'd be happy to talk with them.'
No comments yet