Late payment 'Hall of Shame' entries 2003
Debenhams
Dress it up as whatever you want (Debenhams called it a ‘supplier rationalisation programme' in December 2003), what it meant for suppliers was extended payment terms to 60 days after receipt of the goods or invoice – whichever was the latter. Discounts were increased by 1% and retrospective discounts introduced.
 
Selfridges
Selfridges decided that payment terms would change in October 2003 and that suppliers would have to accept a 2.5% discount on all invoices that were paid within 30 days.
 
Cargo Homeshop
In April 2003 Cargo Homeshop sent a letter to suppliers which said that after careful consideration of their ‘unblemished payment record of the last 2 years', it was about time to introduce a settlement discount to bring themselves in line with industry ‘best practice' and ‘norm'. Best practice! They also promised to review the discount in 12 months time.
 
By July 2006 payment terms had changed to 60 days and a 5% settlement discount.
 
S. F. Cody
Beware the ides of March – the warning to suppliers of SF Cody. In March 2003 payment terms were changed to a 2.5% discount on invoices paid 30 days after the end of the month or alternatively they would be paid without discount 60 days after the end of the month.
 
Shopdirect
Changed trading settlement discounts, purchase rebates and listing fees (for inclusion in their high profile publications) in 2003. They also promised to detail new arrangements for page contributions, product quality and returns procedures. We bet suppliers couldn't wait!
 
Allders
In March 2003, Allders came to the conclusion that their financial performance was unacceptable and ‘drastic action' was needed. Rather than look internally at their own inefficiencies, an extra 2% discount was demanded of suppliers and settlement periods were extended to 31 days after the end of the month of invoice. Suppliers would have to make this adjustment immediately.