Debenhams upsets suppliers with discount demands

Debenhams has angered its suppliers in the run-up to Christmas for the second time in three years after controversially demanding a discount in return for bringing payment terms closer in line with the industry standard.

In recent weeks, the department store chain has contacted suppliers asking for a reduction of between 1 and 2 percent on bills in exchange for paying them 30 or 60 days earlier than their current terms.

In 2013, Debenhams sparked an outrage after forcing some suppliers to cut their prices by at least 2 percent just eight days before Christmas. The controversial move was dubbed the “Santa tax”.

Debenhams says that the window for shorter payment terms will last only for a set period between November 24, 2015 and May 26, 2016. The scheme will come into effect from this Monday.