Matalan suppliers have accused the retailer of “cowboy buying practices” after it reportedly asked for 20% price cuts on several of its clothing orders.
Some manufactures have alleged that the fashion and homeware retailer is involved in some of the “most aggressive, unreasonable buying practices” they had ever seen, The Times reported.
They claimed suppliers were being played against one another in a bid to cut costs, raising issues such as quality to “justify requesting huge discounts”.
Matalan has denied the accusations and said its commercial negotiations were in line with industry standards, adding it is “fully committed to conducting all business in an honest and ethical manner”.
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“Commercial negotiations for new orders take place each season and typically factor in multiple elements,” the retailer said.
“These include notable upward or downward shifts in raw material costs as well as non-financial considerations.
“We believe that open two-way negotiations are a valuable part of forging successful collaborative partnerships.”
Matalan is not the only fashion retailer seeking discounts from its suppliers, as Boohoo riled its own manufacturers earlier this year when it asked for a 10% discount on all outstanding orders.
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