In a bid to extricate itself from obligations to its suppliers Urban Outfitters has contacted them advising that it won’t be accepting any further deliveries of goods it has ordered and is cancelling all undelivered orders. It is also demanding a 30 per cent discount on the cost of any of its orders which are currently in the process of shipment. It said it had little alternative but to take this action and said that members of ts buying and merchandising teams had made personal contact with suppliers explaining the position.
Other retailers have been taking similar action but it is unclear how suppliers are expected to be able to survive without payment for goods already manufactured in good faith and with slashed order books going forward. Most retailers taking this action are being slammed for their lack of consideration and questionable ethics.
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