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21 Apr 2020

Asda: supermarket chain cancels orders with clothing suppliers despite record food sales amidst COVID-19 crisis

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“Coronavirus: Asda cancels orders with suppliers”, 19 April 2020

Asda is cancelling a quarter of orders with clothing suppliers despite seeing record food sales during the coronavirus pandemic.

One supplier told the newspaper that the "behaviour is totally unacceptable". They added that it was "ridiculous" for the firm … "not to pay for orders".

Asda … [said] suppliers will be paid 30% of the order value for those that have not yet been finished, and half for those that have. That rises to 60% for manufacturers based in Bangladesh.

"We have longstanding and valued relationships with our suppliers, and want to help them weather this crisis," the Asda spokesperson added.

The supermarket says its warehouse and in-store colleagues are focused on "getting food onto our shelves for essential retail".

"Some brands are showing a true sense of partnership and high level of ethics in trying to ensure at least enough cash flow to pay workers," said Amit Mahtaney, the chief executive of Tusker Apparel Jordan.

"But we've also experienced demands for cancellations for goods that are ready or are work in progress, or discounts for outstanding payments and for goods in transit..."