What: Suppliers to Debenhams Group report significant payment delays and communication issues, with some owed hundreds of thousands of pounds over three months, despite the group's recent marketplace success and digital transformation.

Why it is important: The payment issues reveal significant operational challenges beneath Debenhams Group's digital transformation success, particularly concerning as the company recently rebranded from Boohoo Group and reported a 17% revenue decline to £1.46bn in its latest annual results.

Multiple suppliers to Debenhams Group have disclosed serious payment delays, with one UK-based supplier reporting outstanding payments of several hundred thousand pounds over a three-month period. Despite responsive buyers, the group's accounts team has been unresponsive to payment requests, leading to significant business impact for suppliers. One vendor reported their monthly business with the group has dropped dramatically from £200,000 to approximately £50,000-£60,000. Another supplier, awaiting tens of thousands in payments six weeks overdue, highlighted the challenge of declining orders due to non-payment, noting that buyers simply find alternative suppliers. The situation has persisted despite the group maintaining its £125m revolving credit facility until October 2026. These issues emerge as the company faces broader financial challenges, having reported a loss before tax of £147.3m in the six months to August 2024 and initiating a fundraising round of up to £39.3m.

IADS Notes: These supplier payment issues emerge during a complex period of transformation for Debenhams Group. While December 2024 showed promising signs with a 65% increase in gross merchandise value to £359.687 million, March 2025 marked a strategic pivot as Boohoo Group rebranded to Debenhams Group, despite facing a 16% revenue decline to £1.2bn. The company has continued to pursue innovation, announcing a transformational AI partnership with AWS in July 2025 and selecting Mangopay to power marketplace growth. However, these technological advances contrast sharply with fundamental operational challenges, suggesting potential disconnects between digital transformation initiatives and basic supplier relationship management.

Debenhams Group suppliers in limbo over late payments