New Look has infuriated suppliers by cancelling all orders, even those mid-way through production or in the shipping process, stating that it does intend to pay for any costs, including those for fabrics and raw materials, or indeed wages, in connection with any cancelled orders. It has also arbitrarily decided it can indefinitely postpone all payments to suppliers for goods it has already taken delivery of.
The news was communicated by a letter from CEO Nigel Oddy. Whilst most were fully aware that New Look has been struggling and may well not survive, this action will come as a bitter blow for many of the third-world suppliers which supply the retailer with low cost fast fashion lines. In case those at New Look are completely blinkered, the workers who have slaved to produce its orders are now effectively destitute, thank to these actions.
Commentators say that this marks the absolute end for New Look, as no retailer who screws suppliers in this way will ever be granted credit again. It is also understood that New Look has been negotiating with landlords for rent holidays, as well as seeking to cut costs everywhere it can.
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