'Slow paying' Bradstone firm dumped in Hall of Shame
Published: 10 February 2016
Bradstone landscaping products supplier Aggregate Industries has been deposited into a
Hall of Shame because of a claim that it has excessively long payment terms.
The Forum of Private Business (FPB), which created the Hall of Shame for companies it deems to have poor payment practices, says one of its members reported that Aggregate Industries pays in 90 days.
The construction materials provider, which can trace its heritage in the UK from the Ellis family, is now owned by Swiss-based conglomerate Lafarge Holcim. The FPB says this is the second well-publicised case of a Quaker family business that was established to trade ethically that "is now mistreating its suppliers", the first being Mondelez (which owns Cadburys) in 2014.
Aggregate Industries disputes the charge as it claims to pay its suppliers at the end of the month plus 63 days. The FPB stands by its allegation on the basis that a supplier that invoices after the first week of the month should be paid in less than three months, and in this instance this was not the case.
"We were initially unclear if this was a mistake on their part or an issue that had come about when they started to use a supplier management system, but the letter we received back from the company left us in no doubt," said FPB managing director Ian Cass.
"EU regulation is clear that a company should pay within 60 days. There is some leeway in terms of invoice date or the receipt of the invoice, but what is clear is that the customer cannot simply choose when the clock starts and then give themselves an extra three days for processing."
The FPB has invited Aggregate Industries to join the Prompt Payment Code, signatories to which complete a How to Get Paid Guide for suppliers.
Along with Bradstone garden and landscaping products, Aggregate Industries supplies a range of materials for commercial and industrial applications.