B&M Bargains fights against rules designed to stop chains exploiting suppliers

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B&M Bargains has claimed it would cost £1million to implement the changes


B&M Bargains fights against grocery rules designed to stop chains exploiting suppliers

  • The rules ensure that major companies make timely payments to suppliers
  • They also ensure that the correct procedures are followed when contracts are terminated
  • But B&M has claimed it would cost £1million to implement the changes 

Simon Neville For The Mail On Sunday

Discount retail giant B&M Bargains is attempting to wriggle out of strict rules designed to stop major chains exploiting food and drink suppliers.

The company, which has about 600 stores and annual sales of £2.6billion, claims a decision to force it to sign up to the Groceries Code Adjudicator would lead to ‘irreparable financial harm’.

GCA rules ensure that major companies make timely payments to suppliers and that the correct procedures are followed when contracts are terminated.

B&M Bargains has claimed it would cost £1million to implement the changes

B&M Bargains has claimed it would cost £1million to implement the changes

But B&M has claimed it would cost £1million to implement the changes required as it works with 1,600 suppliers.

GCA membership is applied to any retailer that has more than £1billion in sales of food and drink, although exceptions can apply.

Many suppliers are said to be angry that Amazon and Boots have not been added.

A tribunal will hear evidence from B&M and the Competition and Markets Authority regulator, which in November asked B&M to sign up to the code.

An earlier attempt by B&M to save £200,000 in GCA fees was struck down by another tribunal.

The hearing was told that chief finance officer Paul McDonald had previously told the CMA that B&M was already ‘largely compliant’ with the rules.

B&M did not respond to several requests for comment. 

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