Department store Debenhams has angered suppliers by asking for discounts in return for early payments.
The Federation of Small Business has criticised the chain for changing suppliers’ terms in the run-up to Christmas for the second time in three years.
Debenhams is reported to be asking suppliers for a reduction of between 1-2% for paying 30 or 60 days earlier than contractual terms.
In response, Debenhams said that it has offered to settle invoices earlier in return for a small discount “in response to the request of some suppliers”. It added that the change in the agreements was entirely optional.
