In a joint press release, branch organizations Modint and FGHS express their support for suppliers of clothing, interior textiles, shoes and sports goods. For this branch of retail, too, stores should open on March 3, and industry associations say there are plenty of ways to do that responsibly.
In addition to the opening of the stores on March 3, Modint and FGHS insist on the importance of more extensive compensation for companies that supply stores. “Suppliers have now pre-financed periods of up to more than a year. At the moment, they also see orders for next seasons to the beginning of 2022 decline, as retailers have no money to buy and will sell collections from 2020 at a loss. Profits in retail evaporate and with it the opportunities to invest in subsequent seasons. Not only now, but also in the longer term, this has enormous consequences for all parties in the chain ”, according to the press release.
The stock allowance for closed retail trade (VGD) should be extended to suppliers, Modint and FGHS argue. “As long as nothing is sold to consumers, suppliers cannot extradite to retailers and cannot be paid.” There is no longer any liquidity in the sector, the industry organizations said in the message.
There is also a need to seriously consider refinancing the chain, so that it can get going again when the stores are reopened. Simple but effective financing should be set up for this.
Image: Aygin Kolaei for FashionUnited
Source: fashionunited.nl by fashionunited.nl.
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