New Look cancels orders, could some stock be held over to next year?

By

Sandra Halliday

Published
Apr 6, 2020

New Look is suspending payments to suppliers for stock it has already taken delivery of and has told them that they can collect that stock. The move comes as it also cancels further SS20 orders and has said it won't pay any of the costs of those orders. 

That's according to a BBC report that said the payments have been delayed "temporarily". The company also told those suppliers in a letter that it didn't take the decision lightly but that it's "a matter of survival”. 

And it's looking at ways that products already in existence can be used towards AW20 and even SS21 collections. A spokesperson told the BBC: "We greatly value our relationships with suppliers and are actively identifying opportunities where they can hold product for use for autumn/winter this year or spring/summer next year."

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Of course, if large amounts of stock were to be held over, that would avoid the issue of huge markdowns, but would also cause problems for some some suppliers further down the line as it would be likely they'd receive fewer future orders. 

The letter and the approach by the company – which mirrors that being taken by other fashion retailers – highlights the enormous problems that the coronavirus lockdown has caused for the entire industry. And those problems have caused businesses from the smallest to the largest to face major threats to their future.

The BBC said it had seen the letter sent by New Look CEO Nigel Oddy dated April 2. The letter said: “We are acutely aware that our suppliers are facing their own challenges at this time, and that both their businesses and employees are being affected. Government support schemes continue to be announced throughout the world, and we encourage you to pursue any options that are available to you.”

The media organisation said it published the report after it was contacted by a supplier. That supplier also said that there are particular problems at the moment because factories in China are insisting on deposits before they agree to take orders and it called on large retail companies to play their part by paying these deposits upfront at the time of the order. 

The New Look spokesperson also told the BBC: "Whilst our online sales channels remain open, albeit on a significantly reduced basis, we have regrettably had to inform suppliers that we cannot place new orders until further notice and will be temporarily postponing outstanding supplier payments until the situation improves. We have not taken this decision lightly and have only done so out of absolute necessity, given the exceptional circumstances we are in."