Boohoo Changes Payment Terms for Some Suppliers

Boohoo, the struggling fashion retailer known for brands like PrettyLittleThing and Karen Millen, is facing potential backlash from its suppliers after recently altering its payment terms. In 2022, the company extended its payment period from 30 to 60 days amid declining sales, which led to significant dissatisfaction among its supplier network. In a bid to mend relationships, Boohoo has reportedly reinstated the original 30-day payment terms for a select group of suppliers identified on a confidential “strategic” list. However, this change has not been applied universally, leaving the majority of suppliers still operating under the extended 60-day terms. This selective approach has raised concerns among suppliers about fairness and transparency. One supplier expressed apprehension that the decision could lead to significant fallout, emphasizing that the disparity in payment terms would likely not be well-received by those left on the longer payment schedule. The situation highlights the ongoing challenges Boohoo faces as it navigates financial difficulties while attempting to maintain supplier relationships. As Boohoo continues to grapple with its business model and supplier dynamics, the retailer's actions may have lasting implications for its reputation and operational stability in the competitive fashion market. The company’s strategy moving forward will be crucial in determining whether it can restore trust and collaboration with its broader supplier base.