Peacocks has angered some of its smaller suppliers by asking for up to 90 days credit on payment, according to reports.
According to The Mail On Sunday, Peacocks, acquired out of administration by Edinburgh Woollen Mill last month, has asked suppliers to extend payment terms to 90 days. The request is likely to be met only by larger suppliers, according to the paper.
Charles Stone managing director of Bandana, which supplies high street retailers including River Island and Arcadia Group, as previously told Drapers that retailers have had payment terms extended from 30 to 45 days and eventually to 60 days.
They have also put a squeeze on prices and adopted more cautious buying patterns, avoiding orders of massive quantities. Trialling orders before investing had become the norm.
Edinburgh Woollen Mill (EWM) is to return Peacocks’ product to a core offer by scaling back on fast fashion as part of plans to revive the value chain, which it bought out of administration last month.
EWM chief executive Philip Day told Drapers that Peacocks had gone “too far into the fast-fashion model” and that collections would need to be “realigned to get customers back through the door”.