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Trade News Archive August 08 July 08 June 08 May 08 April 08 March 08 February 08 January 08
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20th August 2008
Matalan named and shamed for how it treats wholesalers
The Forum of Private Business (FPB) has said that it is 'naming and shaming' Matalan for the way it treats the wholesalers that supply it.
According to the pressure group, the retailer is set to impose a two per cent deduction on all payments to suppliers from the beginning of September.
The retailer said that it was doing this to fund TV advertising and other marketing campaigns.
"This is not the first time that Matalan has passed on costs to its suppliers and it represents a payment problem that is endemic across a number of industry sectors," commented FPB chief executive Phil Orford.
"The fact that this latest charge is being justified to fund initiatives like marketing and international expansion adds insult to injury for many smaller firms, which are struggling to control essential costs as the economic downturn continues."
Mr Orford said that the move was all the more galling as Matalan posted profits of £53.2 million in June of this year.
The FPB's adviser on payments, Stuart Blake, said that the law did protect small wholesalers from larger buyers.
He explained: "A change to contractual terms cannot be made unilaterally. This is a simple matter of contract law."
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