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Falling pound pushes Asda to extend payment terms to 90 days

Thursday 2 March 2017

 Asda, which owns the clothing brand George, has extended its payment terms for international clothing suppliers from 60 to 90 days.

The supermarket owned by Walmart, is imposing extended payment terms on its clothing suppliers as it attempts to turn the business around after recent disappointing quarter results.

According to the Guardian, a letter sent on Tuesday to international suppliers warned they will now have to wait a third longer to receive payment, as it extends its terms from 60 to 90 days. The letter, was sent by Alex Russo, CFO and Andrew Moore, chief merchandising officer.

Asda’s George business, along with other big clothing chains, have been feeling the effects of the falling value of the pound after Brexit vote, as it buys most of its fashion lines in US dollars.

The Guardian reported, a spokesperson for Asda said: “Having reviewed industry standards, we have advised our clothing import suppliers of our intention to amend our payment terms to 90 days.

"We work hard to build strong relationships with our suppliers and continue to offer a number of different finance and support options that allow them to access funding earlier if they require it."

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