The Forum of Private Business (FPB) announced its intention yesterday to add Monsoon Accessorize to its Hall of Shame for late paying companies and said it would be writing to the firm's interim managing director Steve Black concerning its payment terms.
According to the FPB, Monsoon Accessorize has imposed a blanket 4% rebate on all new suppliers and pushed its payment terms out from 60 to 90 days of receipt of goods. Additional "settlement discount charges" of 5% and 10% are applied where suppliers request payment within 30 days and 7-10 days respectively.
FPB spokesman Robert Downes said: "Monsoon is hitting new suppliers with a double whammy here. First they increase payment times to 90 days from an already pedestrian 60. Then they slap on an outrageous 4% supplier invoice discount charge."
However, a spokesman for the high-street fashion firm denied that there had been any recent change to terms and conditions, which he added varied across the company's supplier base.
He said that standard invoice discount charge of "between 0-4%" was introduced at the beginning of 2009 and said that the settlement discount charges were introduced in late 2011/early 2012.
One source told PrintWeek that such tactics "were bound to happen" due to the difficulties on the high street, adding that there was speculation that "another fashion retailer" was poised to follow suit.
In a statement, the company said: "Monsoon Accessorize values all its supplier relationships and aims to build them over the long term and to the benefit of all parties. Monsoon Accessorize has agreed discounts with its trading partners over the years which vary from time to time and help drive growth and sustainability for the business and its suppliers."
PrintWeek understands that print suppliers to Monsoon Accessorize include Witshire-based Image Factory and east London-based Cousin. Neither company was available for comment at the time of writing and Monsoon Accessorize declined to comment on its terms for print suppliers.
