New Look has reportedly suspended payments to its suppliers “indefinitely” for existing stock as it struggles to cope with the financial impact of Covid-19.
It has also cancelled orders for its SS20 collections and will not pay costs towards them, according to a letter the company’s CEO Nigel Oddy sent to suppliers, seen by the BBC.
The letter read: “We are acutely aware that our suppliers are facing their own challenges at this time, and that both their businesses and employees are being affected.
“Government support schemes continue to be announced throughout the world, and we encourage you to pursue any options that are available to you.”
New Look, like countless other companies, is struggling to survive the Covid-19 shutdown. Last month, it halted its production and requested a three-month rent holiday from its landlords to minimise its impact on the business.
A New Look spokesperson said: “Whilst our online sales channels remain open, albeit on a significantly reduced basis, we have regrettably had to inform suppliers that we cannot place new orders until further notice and will be temporarily postponing outstanding supplier payments until the situation improves.”
”We have not taken this decision lightly and have only done so out of absolute necessity, given the exceptional circumstances we are in. We greatly value our relationships with suppliers and are actively identifying opportunities where they can hold product for use for autumn-winter this year or spring-summer next year.”
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Photo credit: FashionUnited