DUBLIN – Fast fashion giant Primark has agreed to pay for all finished and in-production cancelled orders after coming under fire from suppliers and civil society organisations. The Irish business follows in the footsteps of H&M, Zara, PVH and VF Corp among others.
However, there is one notable caveat in the move by Primark: orders placed after 18 March will be subject to payment terms of 180 days.
Paul Marchant, CEO, Primark said: “This announcement represents a further ongoing commitment to our relationships with our suppliers. We have been in close and regular contact with our suppliers over the last few weeks to find a way forward, and to pay for as much of the previously ordered product as possible. Transparency and clarity have been at the heart of our longstanding relationships with our supply base and we were obviously disappointed that we were not initially able to commit to this stock. Our partnerships with our suppliers are invaluable and we want to continue to support them as we navigate our way through this global crisis.”
Added a statement from Primark: “Primark also hopes to re-commence placing future orders for Autumn/Winter stock once there is further clarification of the reopening of stores.
“Primark had previously committed to paying for orders that were in transit or booked for shipment by 18 March. This now brings Primark’s total stock both owned and committed to nearly £2bn while the stores remain closed.
“Today’s announcement will not affect the commitment made within the wages fund Primark announced on 3 April. This fund was established to make sure workers are paid as soon as possible for work on Primark product that was in production.”