Boohoo reportedly demanding 10 percent discount from suppliers

Boohoo campaign. Image: Boohoo Group Fast fashion group Boohoo is believed to be demanding a 10 percent discount from its suppliers in a bid to reduce its supply chain costs. The discount is said to be regarding both delivered and undelivered clothing, covering all outstanding orders made by the retailer. The Times cited an unnamed supplier as its source, who told the publication that it had received a call from Boohoo “demanding” the discount. It added that Boohoo “turns all orders produced into losses” and the firm was “struggling to find suppliers” while “screwing” the ones it had. The move comes after Boohoo had already faced backlash last year for similar supplier-related matters, when it extended its payment terms from 30 days to 60 days. The group has regularly been outlining efforts to reduce costs amid falling sales that it has largely attributed to the cost-of-living crisis impacting the UK. Further efforts have been seen in the closing of its Wellingborough-based distribution centre in January, impacting 420 jobs, and the plan to implement further job cuts at its head office in London, which had initially been reported by The Times.
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Coty considers dual listing, extends CEO partnership

Daniel Grieder, CEO of Hugo Boss and Sue Y. Nabi, CEO of Coty. Image: Hugo Boss Beauty and cosmetics giant Coty has revealed that it is exploring a dual listing on the Paris Stock Exchange (PAR) as it looks to strengthen its presence in the European market. If the company goes ahead with the listing process, it will add to its already long-standing place on the New York Stock Exchange (NYSE) and would allow for it to reach further untapped investors, as noted in a regulatory filing. The possibility of a listing also links into the group’s over a century heritage in France, as well as its business footprint in Europe. Speaking on the plan, Peter Harf, Coty’s chairman, underlined the importance of Paris as a beauty destination and attraction for investors. Harf added: “We have seen consistent growth over the last 10 quarters, in line with or ahead of market expectations, underpinned by targeted investment, disciplined cost controls and a clear debt reduction programme.” It would be a significant move under CEO Sue Nabi, who initially took on the head position in November 2021, and has since made a series of changes to the company in order to reclaim its status. According to Coty, Nabi had led the acceleration of its skincare categories, built up its business in China and returned many of the group’s heritage brands – namely that of Bourjois, Rimmel and CoverGirl – to growth. Coty and CEO secure long-term equity programme The firm said that due to these implementations it was now financially stronger, with a free cash flow of over 400 million dollars in Fy23. In light of this achievement, Coty’s board further announced the extension of its partnership with Nabi, anchoring her in on a long-term equity programme running until 2030. The agreement covers a “significant portion” of performance related shares next to a performance related bonus. Nabi said: “As a long-term shareholder in the company, I am grateful to the board for their continued support and trust, and delighted to have the opportunity of leading Coty through this next chapter of growth and value creation. “We are committed to driving sustainable innovation across fragrance, colour cosmetics and skincare as we rise to meet the consumer needs of the future, while simultaneously campaigning to change outdated definitions of beauty through the #undefinebeauty campaign.”
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