Fashion brand Primark agrees to pay suppliers
Irish fashion brand Primark has announced to pay its suppliers for all completed orders, as well as those in production, providing those products had been scheduled for shipment by April 17.
This is an additional £370m of product, over the £1.5bn of stock already in stores, depot and transit.
It follows "extensive" conversations with suppliers, the retailer said, Drapers, an online business magazine reports.
Primark had previously committed to paying for orders that were in transit or booked for shipment by March 18. However, the retailer cancelled all new orders on the March 23.
The retailer said it hoped to re-commence placing future orders for autumn stock once there is "further clarification" on the reopening of stores.
Paul Marchant, chief executive of Primark, said: "This announcement represents a further ongoing commitment to our relationships with our suppliers. We have been in close and regular contact with our suppliers over the last few weeks to find a way forward, and to pay for as much of the previously ordered product as possible.
Transparency and clarity have been at the heart of our longstanding relationships with our supply base and we were obviously disappointed that we were not initially able to commit to this stock. Our partnerships with our suppliers are invaluable and we want to continue to support them as we navigate our way through this global crisis."
Primark operates 376 stores in 12 countries.
The brand has canceled over $273 million worth apparel products orders and suspended shipment of ready goods. It annually procures apparels worth about $900 million from Bangladesh's over 100 apparel factories.