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Bhs tightens supplier terms

Sir Philip Green’s Bhs has sent a letter to suppliers demanding tighter terms as the business merges with the Arcadia group.

The change to supplier terms will see a 3% increase in discount rate, moving it from 11.25% to 14.25%, effective on payments due from July 1.

In the letter to suppliers, Bhs finance director Barbara Gentles said: “As part of this process [Arcadia merger], we are harmonising group supplier discount rates.”

The Arcadia Group and Bhs functions, including logistics, property and finance, are in the process of being consolidated to improve efficiencies across the businesses.

Sir Philip Greenannounced the merger in February and said at the time: “This is a work in progress. I believe we have the necessary skill and experience across the two businesses to make some strategic changes that will benefit the group as a whole, and further strengthen our position within the market place during a difficult retail climate.”

Bhs and Arcadia declined to comment.

Are you a Bhs supplier who has received this letter? What do you think of the change to terms?

Let us know by commenting below.

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