Prada and Kurt Geiger were embarrassed by the months it took to pay suppliers in the UK
Luxury retailers Prada and Kurt Geiger have been criticized by a campaign group for taking months to pay their suppliers.
Good Business Pays highlights that the two fashion houses and several other companies often take more than two months to pay invoices to their suppliers in the UK
The group said slow and late payments cost small businesses an average of £22,000 a year and lead to the closure of 50,000 businesses annually.
In its March report, Good Business Pays tick Bud Light maker AB InBev and Coca-Cola Europacific Partners, Coca-Cola’s beverage bottler in Europe, are the main culprits of slow and late payments.
Good Business Pay’s biennial reports aim to put pressure on large companies to speed up payments to small businesses where government laws do not force them to do so.
However, compared to last year, the group said the number of companies taking more than 80, 90 and 100 days to pay companies remained unchanged. Similar companies pop up every year, the group said, suggesting “core companies with a culture of slow and/or late payments.”
On this occasion, Prada and Kurt Geiger stand out as luxury companies that take longer than average to settle supplier invoices.
Prada takes an average of 138 days to pay supplier invoices, with four out of five invoices being paid after 61 days.
Kurt Geiger, another luxury brand, takes an average of 103 days to pay its bills. This fashion group is also considered a persistent late payer because it closes invoices after the deadline of the agreed terms.
Additionally, more than half of Kurt Geiger’s bills were paid late.
Representatives for Prada and Kurt Geiger did not immediately respond to requests for comment.
Previous legislation forced companies to report their payment timing data or face prosecution, forming the basis of Good Business Pays reports. However, this emphasizes the fear of reputation that changes corporate behavior.
Terry Corby, CEO of Good Business Pays said: “Only reputational pressure from organizations like Good Business Pays, backed by appropriate legislation and enforcement from government, can force change late and late payment behavior”. “These new measures will go some way to accelerating that cultural change.”
The new Labor government is planning Bring in a consultation on fair payment times and also introduces the Fair Payment Code, which is only awarded to companies that can demonstrate they meet good payment standards.
The consultation will consider other measures that could force many companies to speed up payment times.
“We are determined to support small businesses by unlocking the barriers to their growth, and eliminating late payments is at the heart of this,” British Prime Minister Sir Keir Starmer said in September.
