Debenhams has declined to comment on reports that it is forcing some suppliers to wait 120 days to be paid for goods. The Telegraph claimed that the retailer had introduced new payment terms for a small number of firms in a move that has angered suppliers.
Some suppliers say that while putting the squeeze on them, the group’s management has made a lot of money since three venture capitalists joined forces with three Debenhams directors to buy the company for £1.9Bn in December 2003. Since then £1.2Bn has been taken out in capital repayments.
Before the changes, payment terms for some suppliers were believed to be between 45-60 days which is longer than for many other retailers.
A spokesman for Debenhams declined to comment on the situation.