Report: Suppliers Allege Boohoo Delayed Payments

Report: Suppliers Allege Boohoo Delayed Payments

Boohoo could be facing further issues with its suppliers.

According to The Telegraph, the fast-fashion player sent notices to some of its suppliers to let them know it was “running behind on payments,” then requested that those suppliers disclose how much stock they would be willing to deliver without receiving payment for previous shipments.

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Boohoo is part of the Debenhams Group, which was previously known as Boohoo Group and also includes Debenhams and PrettyLittleThing, though it has been exploring the sale of the latter brand.

In regard to the allegations from suppliers, a Debenhams Group spokesperson said, “A junior colleague, in one of our smaller brands, emailed a small number of suppliers to work on capacity planning.”

The alleged delayed payments compound on other issues Debenhams Group has reportedly had within the past two years.

In July, Drapers reported that a number of Debenhams Group’s suppliers said the company owes them thousands of dollars in payment. One supplier reportedly told the outlet the company owed him “several hundred thousand pounds over a three-month period” and that unreliable payments had been a problem “for years.”

And, in 2024, the then-Boohoo Group withheld payment to some of its suppliers after alleging that they had produced goods that did not meet its standards. A spokesperson told Sourcing Journal at the time that the issue applied to “a very small number of supplier partners.”

In addition to the back-and-forth with suppliers, Boohoo has reportedly run afoul of consumers’ expectations around reverse logistics. Customers have taken to social media in recent months to complain about the company’s return processing times.

“Is anyone else finding their @boohoo returns/refunds taking absolutely ages? Been waiting over two weeks for a refund to go into my account,” one user wrote on X in May, finding a chorus of agreement in her replies.

“If only @boohoo were as quick to issue refunds for returns as they are to sell me more. At least one email a day since I ordered 3 weeks ago. Sent return back over 2 weeks ago and still no sign of refund,” another wrote in July.

The Telegraph reported on consumers’ return woes in June and noted that a spokesperson reportedly admitted returns had been taking longer than usual to process, but did not explain why.

The supply chain question marks come as Debenhams Group finds itself on uncertain footing; in August, the company shared that it had agreed to a  £175 million ($235.9 million) borrowing facility at an interest rate that was 7.3 percentage points higher than the base rate for the Bank of England. That move brought ire from Mike Ashley, owner of Frasers Group and Boohoo’s major shareholder; he said that the decision would see cash being “sucked out” of the group at a time when it has already been facing financial struggles.

Last month, the company disclosed in its results that it had seen pre-tax losses of close to £264 million ($355 million) for the year ended Feb. 28; in a letter to investors, Debenhams Group chair Tim Morris said the group is “at the starting point of [its] multi-year turnaround journey” that will be bolstered by the success of the Debenhams brand and focused on bringing the company’s “youth brands,” like Boohoo, BoohooMAN and PrettyLittleThing back toward profitability.