// New Look informs suppliers it will cancel all orders and delay payments “indefinitely”
// Cancellations pertain to orders in production, in origin or at port but not yet loaded on to a vessel
// Payment delays pertain to orders accepted & are in transit, in New Look’s distribution centre, or in stores
New Look has reportedly informed suppliers that it will cancel all orders and delay payment terms “indefinitely” in a bid to ease the financial impact of the coronavirus crisis.
According to Drapers, the retailer’s chief executive Nigel Oddy wrote to suppliers to request immediate cancellations of spring/summer orders in production, in origin or at port but not yet loaded on to a vessel.
He also reportedly requested an “indefinite” delay of payments for orders New Look has accepted and are in transit, in the retailer’s distribution centre, or in stores.
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Regarding the latter, Oddy wrote: “Should you wish to reclaim possession of such orders, we would, of course, be happy to make them available to you for collection at our distribution centre.
“Again, this is a matter of survival for New Look and is our assessment of the measures that need to be taken at this time of severe market dislocation due to factors outside the control of enterprises, organisations, and individuals.”
The news comes as New Look seeks to address all business expenditures in order to mitigate the coronavirus pandemic, such as requesting rent holidays from landlords, deferring tax payments, and reviewing employee costs and resources.
“We, like many other retailers, are having to take difficult and necessary actions to try to mitigate the impact the Covid-19 outbreak has on our colleagues and business,” a New Look spokeswoman told Drapers.
“Whilst our online sales channels remain open, albeit on a significantly reduced basis, we have regrettably had to inform suppliers that we cannot place new orders until further notice and will be temporarily postponing outstanding supplier payments until the situation improves.
”We have not taken this decision lightly and have only done so out of absolute necessity given the exceptional circumstances we are in.
“We greatly value our relationships with suppliers and are actively identifying opportunities where they can hold product for use for autumn-winter this year or spring-summer next year.”