Fashion multiple Monsoon Accessorize is being put into a “hall of shame” by the Forum of Private Business for squeezing its suppliers on terms.
The business has increased its payment times from 60 to 90 days and told suppliers they will be subject to a mandatory 4% invoice discount. Suppliers who take on a greater discount, payment is being promised more quickly, for example those who accept a 10% discount will be paid within seven-10 working days of goods received.
Spokesman Robert Downes said: “Monsoon is hitting new suppliers with a double whammy here. First they increase payment times to 90 days from an already pedestrian 60. Then they slap on an outrageous 4% supplier invoice discount charge. Just exactly what planet are they on in the current economic climate?”
“At the end of the day, if supply chain prices are forced up as a result, it’s the consumer – Monsoon customers – who end up paying for their greed.”
The Forum has written to the company’s interim managing director Steve Black requesting him to reverse the decision and sign the association’s prompt payment code, pledging to pay suppliers on time and not to change conditions during a contractual period.
Other retailers in the FPB’s “hall of shame” include Sainsbury’s and GlaxoSmithKline.
Monsoon was unable to comment at the time of publication.