Debt-laden Premier Foods has joined BakkavoEr and Uniq in extending payment terms to suppliers in a bid to address cashflow problems. One industry source said: "Premier has sent out letters saying it will pay bills in 90 days instead of 60. It's pretty desperate stuff." A rival added: "60 days is pretty standard, so this is not a good sign." Premier said the suppliers that had recently received letters were simply being brought into line with the rest of the supply base. It added: "We are standardising our payment terms as part of an ongoing integration process." Whether payment was given in 60 or 90 days depended on when in the month invoices were sent by suppliers, it said. "We pay or procure the payment of all invoices within 60 days of the end of the month of receipt."
展开▼
