Bestseller vows to make early payments as orders resume
Jul 6, 2020
Danish fashion giant Bestseller said on Monday that it’s going to be making faster-than-usual payments to its suppliers until October as the industry tries to get back to some kind of normality.
The company, which owns chains such as Vero Moda and Jack & Jones, said it’s “immediately releasing payments on current orders, as well as implementing early payments until October, to ensure suppliers' cash flows. The focus is on bringing our partners through the crisis”.
Like others in the industry, the company has had to take some difficult decisions regarding SS20 orders, but it said it has “tried our very best to minimise the impact passed on throughout our global supply chain”.
It added that “our closeness to our supply chain partners is something that we have always been proud of and, as a company, we see this as a critical part of our foundation and an enabler for future development.
“We understand the current situation for many manufacturers in our industry, and are determined to support our suppliers in the most effective way at this critical time. Therefore, Bestseller will immediately pay all current invoices early – regardless of the date of invoice. By releasing payments early, we aim to instantly strengthen our suppliers’ cash flow”.
The details of this plan are that for the coming three months with Cargo Closing (CC) dates in July, August and September, it’s paying within 10 days. “We trust that providing this immediate cashflow will — in the best possible way — enable our partners to do even better business with us, while helping all our suppliers meet their commitments,” the company said.
It will revert to 90-day payment terms as of October 1.
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