Suppliers threaten sanctions as Super-Sol changes payment terms
Manufacturers: 'If Super-Sol only pays next month, we'll supply the goods only next month'
The heavy hand of Super-Sol (TASE: SAE) is yet again annoying its suppliers. Super-Sol, the biggest retail chain in Israel by some margin, has been advising its suppliers in recent days that it will be making its monthly payment will only cover goods supplied by the 25th of each month, and will made only on Fridays. One supplier told TheMarker, "If Super-Sol only pays next month, then it will get the goods only next month."
Most of the anger is at the way Super-Sol handled the matter. The suppliers claim that the chain did not talk with them beforehand, and that the payment terms were first changed, then they were notified. Top people at a manufacturer called it just the latest of Super-Sol's heavy-handed moves.
The suppliers are not going down without a fight. Some have started talks with Super-Sol to change the decree. Others threaten to withhold supplies unless the retailer reverses its decision. The suppliers are unlikely to form a united front, though, for fear of anticompetition charges. When the Association of Food Manufacturers combined forces in the case of Clubmarket's collapse, they needed a special permit from the Antitrust Authority.
Meanwhile, rival chain Blue Square Israel (NYSE, TASE: BSI) has been paying only on Fridays for years, which strengthens the theory that the suppliers' annoyance is chiefly at the way Super-Sol went about the change.
As of writing, Super-Sol had not commented on the report.