According to press reports, Debenhams has extended its payment terms to suppliers to 96 days amidst tough market conditions. The company is thought to be struggling with £970 million of net debt whilst sales continued to suffer in recent weeks.
The company has issued a series of profit warnings since it returned to the stock market in May 2006 after almost three years of private equity ownership.
Reports now suggest that suppliers are being asked to bear the brunt of the trading downturn with extended payment terms and bigger discounts being demanded by the department store chain. So far, Debenhams has refused to comment on the speculation.
No comments:
Post a Comment