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24 Mar 2020

James Warrington, City A.M

Primark cancels all supplier orders after triggering force majeure clause in contracts

"Coronavirus: Primark to close all UK stores as pandemic hits high street", 22 March 2020

... Primark has cancelled all new orders in anticipation of plummeting demand... after the force majeure clause in contracts was triggered... [It] will come as a huge blow to suppliers.

“It is an absolute bomb — if they do as they say, they will bring down most of my industry,” one supplier told the Sunday Times...

It is understood that Primark will pay for any orders that have already been shipped. However, suppliers face non-payment for any orders that have not yet left factories.

... [C]hief executive Paul Marchant [said:] “We have... been left with no option but to take this action. We have large quantities of existing stock in our stores, our depots and in transit, that is paid for and if we do not take this action now we will be taking delivery of stock that we simply can’t sell. This is unprecedented action for unprecedented and frankly unimaginable times.”...