Food manufacturing firm 2 Sisters is setting “beyond unreasonable” terms in its contracts, according to reports.

The firm, which produces Goodfella’s pizza and Fox’s biscuits, is seeking payment terms of over four months and a discount if it pays within 90 days from its suppliers, according to documents seen by the BBC.

2 Sisters supplies supermarkets including Asda, Tesco, Sainsbury's, Lidl, Aldi and Marks & Spencer.

Under the EU Late Payment Directive, firms should not take more than 60 days to settle bills without explicit agreement from a supplier.

In a statement the company said: "Ultimately, the supplier can choose not to trade on any terms it feels is unsuitable, and we abide by standard business-to-business payment protocols where payment can exceed 60 calendar days as long as this is expressly agreed in the contract."