Primark pledges to pay suppliers for “all outstanding orders”

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Primark Paul Marchant covid-19 lockdown reopening
Primark confirmed that its standard 30-day payment term remains in place
// Primark will pay suppliers in full for any outstanding orders
// The retailer will utilise or pay for any “finished fabric liabilities”
// Since reopening stores, Primark placed £1.2bn of orders for coming seasons

Primark has reportedly committed to paying suppliers in full for all of its outstanding garment orders.

The fast fashion retailer said it would utilise or pay for any “finished fabric liabilities”, Drapers reported.

Primark will also be working through the details of this commitment with suppliers on a one-to-one basis over the coming weeks.


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Since reopening its stores last month, Primark – which does not offer an ecommerce channel – placed £1.2 billion worth of orders for coming seasons, up from £1 billion announced on July 2.

However, the retailer confirmed that its standard 30-day payment term remained in place.

Previously, Primark had made commitments to pay in full for orders that were in production, finished and planned for handover by April 17 – the hight of the pandemic.

At the time, it committed to taking an additional £370 million of orders finished and/or in production, taking its total stock owned or committed to around £2 billion.

Chief executive Paul Marchant told suppliers that due to the “devastating impact of Covid-19”, Primark would have lost some £2 billion in sales this financial year.

He added that cancelling orders was one of the “toughest decisions” the team ever made, but it was to ensure Primark would be able to withstand the Covid-19 crisis.

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