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Matalan named and shamed by FPB

Published: 28 August 2008
Forum of Private Business (FPB) enters Matalan into its 'hall of shame' after the retailer imposes a new charge on suppliers to fund its growth.
Matalan named and shamed by FPB
Matalan was named and shamed after, at the expense of its suppliers, the retailer announced plans to expand retail parks, develop international franchises, expand its online business and refurbish its stores.

The company's buying director, John Lyttle told FPB members that Matalan would impose the charge to fund 'drive efficiencies' and prepare for 'future growth'.

He also made a promise to its suppliers: "The benefit from the above expansion will generate increased business, and I hope you will participate in this growth."

The FPB's chief executive Phil Orford is most unimpressed with Matalan's course of action. He said: "This is not the first time that Matalan has passed on costs to its suppliers and it represents a payment problem that is endemic across a number of industry sectors.

"The fact that this latest charge is being justified to fund initiatives like marketing and international expansion adds insult to injury for many smaller firms, which are struggling to control essential costs as the economic downturn continues."


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