Majestic asks wine suppliers for financial help
Many of Majestic's suppliers were surprised when the request came through from them to help out with investment in their new distribution centre. Majestic had asked some of its suppliers to contribute a 4p per bottle retrospective payment to help fund their new warehouse in Hemel Hempstead. While many suppliers didn't want to comment openly there were mutterings about ineffective budgeting from Majestic. Majestic have defended their action by saying that the new centre will facilitate the growth of their business which will in turn benefit their business partners. This comes as there is increasing scrutiny over how retailers treat their suppliers since Tesco's £263 million profit overstatement which is linked to how supplier payments are accounted for. No information was forthcoming about how many suppliers had actually accepted Majestic's kind invitation!