LONDON (Alliance News) - Kingfisher PLC's B&Q DIY retail business is facing claims it threatened its suppliers by demanding they pay hundreds of thousands of pounds to remain on its books, The Times reports on Friday.
B&Q is understood to have approached companies demanding contributions to an "investment-for-growth" programme, according to a Times investigation, with one supplier describing the practice as a "massively underhand cash grab".
Suppliers speaking to The Times said they had been subjected to verbal "pay-to-stay" demands amounting to as much as a tenth of their turnover by B&Q. The retailer is understood to have described the requests as being designed to help it discount products and "share in their growth".
http://www.thetimes.co.uk/tto/business/industries/retailing/article4366920.ece
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Kingfisher (KGF)