Boohoo has asked suppliers for a 10% discount on delivered and undelivered clothing as the online fashion retailer aims to take costs under control.
One supplier told the Times they had received a call yesterday demanding a discount on all outstanding orders.
“It turns all orders produced into losses,” the supplier said. “This is major self-harm. They are struggling to find suppliers and now they are screwing the ones they have.”
The move follows last year’s backlash from suppliers when Boohoo extended its payment terms from 30 to 60 days.
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Boohoo thrived during the lockdown, snapping up brands like Karen Millen, Oasis, Warehouse and Debenhams, and seeing record sales. Now, it’s reducing costs across its supply chain as the online retailer struggles with weakening consumer demand amid cost of living crisis.
The fast fashion retailer‘s value has dipped under £600 million with a share price of around 47 pence, down from a high of 433p in June 2020.
The group is currently consulting on more than 100 redundancies at its office in Soho, with the majority of roles in its ecommerce, buying and design unit under threat.
In February, Boohoo unveiled plans to boost its market capitalisation seven-fold over the next five years.
