Peacocks changes terms with suppliers
High street chain Peacocks has changed payment terms for suppliers and is asking them to use Tradewind, a finance company, as it looks to unify terms and simplify the payment process.
The move will see all payments processed by Tradewind, which will pay suppliers within seven to ten days and charge a 2.25% fee on each invoice.
This will give Peacocks more time to pay for shipments, increasing the maximum time it takes to pay from 90 to 130 days.
The chain, which has about 500 shops in the UK, was acquired out of administration by billionaire Philip Day for £23m in 2012. The brand is now part of Edinburgh Woollen Mill’s portfolio, which also includes Jaeger, Austin Reed and Berwin & Berwin.
A spokesperson for Peacocks said: "Our relationships with our suppliers are fundamental to the business and we always seek to provide our partners with quick and simple payment.
"The deal we have negotiated with Tradewind means that suppliers are guaranteed to get paid in 7 to 10 days, which is quicker than anyone else on the high street and at better rates than they could access elsewhere. The vast majority of our suppliers currently use Tradewind.”
The decision to designate a specific trade finance firm is unusual, however Peacocks said it was not triggered by the tough headwinds facing the UK high street in the last year. Many retailers struggled during the key Christmas period, while Brexit uncertainty continues to impact consumer confidence.
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