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Supplier goes out of business after factory fails Primark test

Primark supplier Positive Clothing London has gone into administration after the retailer cancelled its contract, Drapers understands.

It is understood the fast-fashion supplier was using a UK factory – the location of which has not been disclosed – that failed to meet a Primark inspection.

Positive specialised in jersey products for women and supplied retailers including Primark, Debenhams, Jane Norman and Sports Direct.

The company, which employed 19 people at its head office at 20 Wells Mews in Fitzrovia, is understood to have ceased trading some weeks ago.

Paul Cooper and Paul Appleton, both of David Rubin & Partners, have been appointed as administrators.

One industry source said: “They were using the wrong factory and Primark pulled the plug. They [Positive] owe a lot of money.”

Drapers understands one Leicester-based fabrics firm is owed £900,000.

A Primark spokesman confirmed it was one of a number of Positive’s customers. “Primark did not cancel any orders, but we declined to place any new orders,” he said.

A source close to the situation told Drapers: “The staff were notified immediately and that was that. Some were left out of pocket and had to apply to the [government’s] National Insurance Fund.”

An industry observer added: “Primark is cancelling a lot of orders with factories. It is over-booking to make sure it can meet demand, but sales on the high street are bad as it has been so warm so it is phasing back orders.”

Readers' comments (9)

  • I think you'll find that Primark are losing focus.
    Paul Marchant pulled in a lot of New Look personnel and sidelined/ squeezed out a lot of the team who had built the business and understood the brand DNA.
    Relentless expansion is masking the situation.
    The attention to detail and product standards are being lowered.

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  • They are expanding, increasing their turnover and profit. I think the product is excellent for the price and obviously so do many thousands of other people. I think you will find Business in general for all sectors is VERY TOUGH, What would you suggest have a sale at 50% off!

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  • I wish I could 'like' the first comment, as it is true. The rot has started to set in.

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  • If that is the case why do you both write under Anonymous, you should have the courage of your convictions and put your names to the comments!!
    Or do you know something we don't??

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  • Hayley Chalmers

    A UK clothing factory closing? This doesn't need to happen. There are plenty of fashion businesses looking to manufacture in the UK, big and small. Other UK factories are booked months ahead. Will the administrators now take the easy route and wind up - or will they put someone in to - or sell the business to someone who can - find new customers and fix whatever the primark inspection didn't like. If this factory found better customers - ones prepared to pay more than a couple of pounds per garment they might have a more viable business. Come on Paul Cooper and Paul Appleton - keep this much needed factory alive.

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  • I hope Mr A , 30th October, reads your article of today reference Primark increase in turnover and profit!
    I look forward to reading his/her comments..

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  • Mr A, 30/10 knows what he is talking about as he is clearly a supplier who works at the coal face and can see what is actually happening as opposed to Mr Hood, an arm chair pundit...

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  • Oh to be so confused, if he is such a person Why don't you all put your name to your comments and stop hiding behind Mr A!

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  • The issue is nothing to do with anonymity; it is to do with Primark's direction...it is obvious why Mr A is having to be anonymous. I posted the comment on the 6/Nov and for the record I am not Mr A nor know who he is.

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