The fast fashion group Boohoo is said to be asking its suppliers for a 10 percent discount in order to reduce costs in the supply chain.
The discount is said to apply to both delivered and undelivered clothing and to cover any pending orders from the retailer. The Times cites an unnamed supplier as a source, who told the British daily that he received a call from Boohoo “demanding” the rebate. He added that Boohoo “turns all orders produced into losses” and that the company “is struggling to find suppliers” while “bugging” those it has.
The move comes after Boohoo was criticized for similar supplier-related matters last year, when it extended its payment terms from 30 to 60 days.
The group has regularly outlined its efforts to cut costs in the face of falling sales, which it has largely attributed to the rising cost of living in the UK. Other measures included the closure of the Wellingborough distribution center in January, affecting 420 jobs, and a plan to further shed jobs at the London head office.
This translated and edited post previously appeared on FashionUnited.uk.