27th Jan 2015 06:48
LONDON (Alliance News) - Diageo PLC has warned its suppliers it plans to take three months to pay its bills, making the company the latest high-profile group to put pressure on its supply chain, The Daily Telegraph reported on Monday.
The Telegraph said it has seen a letter from the FTSE 100-listed company to its suppliers saying that from February 1 it will extend the number of days it takes to make payments from 60 days to 90 days on all new contracts and tenders.
The Forum of Private Business, which found the letter, said it was "very concerned" by Diageo's actions and will make a complaint to the UK government.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11370688/Diageo-threatens-backbone-of-economy-by-squeezing-suppliers.html
By Sam Unsted; [email protected]; @SamUAtAlliance
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