Primark is pledging to pay suppliers in full for all outstanding finished garment orders and to utilise or pay for any finished fabric liabilities, Drapers has revealed. The company has placed £1.2billion of orders for coming seasons. It confirmed that its standard 30-day payment terms remain in place.
It follows previously announced commitments to pay in full for orders that were in production, finished and planned for handover by 17 April, after all the retailer’s stores were closed in mid-March.
In April, Primark established a wages fund to ensure workers were paid for product in production. To date over £23 million has been paid out, according to the retailer. It committed to taking an additional £370 million of orders finished and/or in production. This brought its total stock owned or committed, while stores were closed, to around £2billion.