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Frasers Group is reportedly seeking discounts on outstanding payments and spring/summer orders from its suppliers, Drapers has reported.
According to reports, it is asking the suppliers of its recently acquired brands for a 10% discount off outstanding payments and a 20% discount off ordered goods for the spring/summer 2023 season.
Last month, Frasers acquired five premium fashion brands from JD Sports, including Cricket, Tessuti, Scotts, Giulio and Choice.
The £47.5m deal with its rival already saw Frasers agree to acquire a total of 15 fashion brands, with eight already having joined its business on exchange last year.
However, it also revealed the acquisition of the Rascal Clothing brand, as previously announced, will no longer proceed.
The brands’ suppliers recently told Drapers that Frasers would not take in deliveries for spring/summer stock or place new orders until further notice however.
Several suppliers who are reportedly owed “millions of pounds” told Drapers there had also been no communication from Frasers regarding outstanding payments from the fascias.
According to Drapers, Frasers is currently in the process of reviewing its relationships with suppliers alongside future plans for its recently acquired businesses.
One menswear source told Drapers: “I’m not prepared to discount because I don’t think it’s fair or ethical. If they don’t want to place orders with us going forward, that’s fine, I don’t have a problem with that and I will build my business model that works without them. But what they must do is to honour their commitments and honour the fact that these businesses were bought as a going concern.”
Another source added: “In effect, they are saying if you can provide a discount, you can be in front of the queue. It’s a way of them saying we are offering you the opportunity to be paid quicker and for normal business to continue but for that, we want a discount on all outstanding invoices.”
Frasers has been contacted for further comment.
