Debenhams Fears Discounting

Debenhams suppliers fear the imposition of a retrospective discount will be one of the first steps taken by Baroness Retail, which took over the business last week. The retrospective discount, a favourite tactic of recent successful buyers of fashion retailers, is believed by Debenhams suppliers to be on the cards for January. It is understood they currently operate on a standard discount of 13.25 per cent, but it is not yet known how much this may increase by.

Debenhams has stated a series of pre-Christmas promotions, including a 20 per cent reduction for Daily mail readers, and suppliers are agreed at the prospect of having to carry the can for any shortfall in sales. Debenhams head office staff are waiting to see what will happen after last week's GBP1.7 billion takeover by Baroness Retail, the consortium let by retailer John Lovering.