Boohoo has asked for discounts of over 30% on outstanding orders from Turkish suppliers as it looks to cut costs across its supply chain.
As a result, the fast-fashion retailer has written to some of its suppliers based in Turkey, asking them to revise some already agreed prices following recent benchmark changes achieved in Pakistan.
According to Drapers, some suppliers were informed contracts would be cancelled if they do not comply with the new prices.
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However, these new prices are understood to be over 30% less than the original prices which were agreed, despite items involved already being in production and some even being shipped.
The fast-fashion retailer, which has over 250 suppliers in Turkey, recently asked for a 10% discount on outstanding orders from its suppliers.
In the year ended 28 February 2023, the online retailer posted a loss of £90 million compared to a pre-tax profit of £7.8 million in the same period the previous year.
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