Bangladesh – Billionaire Philip Day is in hot water as a Bangladeshi clothing company accused him of undermining their deals and even trying to abuse their agreements by ordering discounts, withholding payments, demanding discounts despite a contract, cancelling orders when its already been shipped and many breaches to the contract.
They are threatening to half all production and stop all deliveries to the billionaire’s Edinburgh Woollen Mill group until he pays the 27 million GBP he owes them.
About 30 suppliers who provide for Day’s shops that number in the 1000s, Austin Reed, Jaeger and Peacock included, arranged a complaint letter to the Bangladesh Garments and Manufacturing Association trade body where they accuse Philip Day’s group, Woollen Day for taking undue advantage of the COVID-19 situation.
In the letter, they demanded payment for goods already handed over to Edinburgh Woollen Mill’s shipping agents on 29 May and for payments of 5 June for orders that were already in production.
In the letter, it explicitly says any discount requested by the retailer “beyond permissible limits” could lead to legal action.
“The demand for the discounts will not only be financially catastrophic, but will also expose our members to various claims and liabilities from regulations, banks and other third parties, which will eventually legally implicate the buyers themselves. We will have no option but take the decision to place an embargo and blacklist the buyers and their agents who do not comply with our instructions, which will prevent them from conducting business with our members in the future either directly or indirectly.”
The letter was an “unprecedented response” from manufacturers who were under severe financial strain because their wealthy British retailers were not paying up, using COVID-19 as an excuse.
“There are more than tens of thousands of workers in the suppliers to Philip Day’s UK businesses, and these young women and their families are at risk of becoming destitute if their wages are not paid. Philip Day is a billionaire, valued at £1.14bn, who can well afford to pay for what he has ordered” Fiona Gooch from campaign group Traidcraft Exchange Gooch said.
Philip Day and his team have yet to respond to the letter but if the shops stop receiving their orders, the billionaire may have to break the silence and make a deal.
