Lingerie etailer Figleaves has tightened up its supplier terms to help drive the business into profit for the first time.
Lingerie brands told Drapers that the online retailer had sent a letter to suppliers offering three new different payment options, including an extension of payment terms from 30 days to 60 days.
But Figleaves added in the letter that the payment process would begin at the end of each month, meaning that if suppliers deliver early in the month real payment terms could be closer to 90 days. Other options include deeper discounts for a shorter payment period.
One lingerie supplier was angered by the changes which, she said, were retrospective and would affect existing orders. “I can’t believe the bullying tactics employed by Figleaves,” she said.
“We have product being shipped at the moment. We don’t need Figleaves and I can take the product somewhere else, but it’s not fair on the smaller brands.”
Figleaves chief financial officer Debra Wood said: “Figleaves is standardising its business payment terms, offering all suppliers an equal platform to work on.
“Previously, Figleaves had 37 payment options; our terms will now come in line with our competitors.”