Suppliers at Matalan have reportedly accused the company of ‘cowboy buying practises’ after it allegedly requested 20 per cent price reductions on a number of its garment purchases.
According to reports, some manufacturers claim that the fashion and home goods giant engages in some of the ‘most aggressive, unreasonable buying practises’ they have ever witnessed.
They alleged that in an effort to reduce costs, suppliers were pitted against one another and used quality concerns to ‘justify requesting huge discounts.’
The allegations have been refuted by Matalan, which further stated that its business dealings adhered to industry norms and that it is ‘fully committed to conducting all business in an honest and ethical manner’.
“Commercial negotiations for new orders take place each season and typically factor in multiple elements,” the retailer said.
Matalan is not the only fashion retailer seeking discounts from its suppliers, as Boohoo riled its own manufacturers earlier this year when it asked for a 10 per cent discount on all outstanding orders.
