Fast fashion giant Boohoo Group has reportedly demanded a major discount from its suppliers as it looks to reduce overheads.

According to The Times, the British company which owns brands including Warehouse and Debenhams, has asked its suppliers for a 10 per cent discount on delivered and undelivered clothing orders.

The report cites one supplier who described the move as “major self-harm,” and said that the company is “struggling to find suppliers and now they are screwing the ones they have.”

Boohoo previously rocked its suppliers last year when it doubled its payment terms from 30 to 60 days.

The move is part of a wider swathe of cost-cutting measures being taken by the group, with the company consulting on more than 100 redundancies in its ecommerce, buying and design unit operating out of Soho, London.

Boohoo is also still looking to overcome reports of poor working conditions among its suppliers which emerged in 2020. This led to a shake-up of the company’s supply chains and governance.

Elsewhere, Boohoo has settled a $197 million court case in the US where the company was accused of faking discounts for customers.The company was accused of engaging in a “deceptive pricing scheme” where it would falsely raise the price of its clothing to make discounts appear greater.

The company is now required to include a disclaimer that the product prices listed as ‘reference’ prices are not based on the original prices for the products.

Boohoo continues to deny all allegations, but agreed to settle the lawsuit to avoid the “uncertainties” and “expenses” associated with ongoing litigation.

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