Food and drink group hits out at Wetherspoons over supplier payments

Tim Martin, Chairman of JD Wetherspoon with Prime Minister Boris Johnson during a visit to Wetherspoons Metropolitan Bar in London
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Kit Heren26 March 2020

A leading food and drink suppliers' trade association has slammed Wetherspoons after the pub chain asked suppliers if it can pause payments until it reopens after the coronavirus lockdown.

Wetherspoons founder Tim Martin sent the request in a letter to suppliers, which sustainable business website Footprint says it has seen.

“We are asking for a moratorium on payments, until the pubs reopen, at which point we intend to clear outstanding payments, within a short timeframe,” the letter said.

But Ruth Evans, CEO of BFBi, which represents every kind of pub supplier, told the Standard: "Tim Martin’s comments appear, at best insensitive and lacking empathy. At worst, an employer that has no consideration for his suppliers."

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Ms Evans added that Wetherspoons' request will "break" the supply chain and could even harm the pub chain itself.

She said: "This does not only affect drinks manufacturers, it affects very single company that supplies a company that supplies a drinks manufacturer that supplies Wetherspoons.

"We estimate that the dispense sector of the supply chain equates to 40,000 employees.

"By not paying the supply chain, Tim Martin is ensuring there will be 40,000 more people fiscally unable to buy a beer when he is able to open his pubs."

 Wetherspoons boss Tim Martin
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Ms Evans added that the margins Wetherspoons' suppliers operate on are already thin.

She went on: "The supply chain has already given to Wetherspoons.

"To ask that supply chain to wait even longer for what they have already made and sold is neither appropriate or supportive."

Wetherspoon's chairman Tim Martin 
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A Wetherspoons spokesperson said: “Wetherspoon has asked suppliers to help it out at this difficult time, but individual suppliers can get in touch to discuss this with Wetherspoon."

The news comes as the chain told staff they would get their first payments under the new Government grants covering 80 percent of workers' wages on April 3.

Payments will be made weekly thereafter, the pub chain added.

Earlier this week staff hit out at Mr Martin after he told them they would be paid for their work until Friday, when all pubs were ordered shut - but wouldn't get any more money until the company received the Government grants.

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Mr Martin said staff could look for work elsewhere and added that they would be given first preference for jobs when pubs reopened.

One staff member called the news, which was sent to employees in a video message, "absolutely outrageous".

Another, a pregnant mother in her early 20s with several health issues, said it would be "almost impossible" to stay in her house.

A Wetherspoons pub was vandalised on Wednesday, with graffiti reading "pay your staff".

A spokesperson said: “As we understand it, tens of thousands of hospitality workers and others have already lost their jobs, but Wetherspoon is retaining all its employees, using the Government scheme for the purpose for which it is intended.”

Other businesses have also been criticised for their approach to the lockdown for all but essential businesses.

Sports equipment retailer Sports Direct performed a U-turn on staying open on Tuesday, after accusations of greed from union Usdaw and Labour Party chairman Ian Lavery.

The company also sent a letter - seen by the PA news agency - to staff, telling them to hike prices on certain items by as much as 50 per cent.

A spokesperson for Frasers Group, Sports Direct's parent company, told the Standard: "While some goods have seen an increase in price at Sports Direct, this is not the complete or accurate picture.

"Not only were these goods originally discounted, but even now they are under the recommended retail price.

"In regard to the rest of the Group facias - including Flannels, House of Fraser and USC - there continues to be a 20% discount on all online sales until mid-April.”

There has been widespread criticism of the measures taken by both companies.

And MP Rachel Reeves, who chairs parliament's business select committee, has written to Mr Martin and Mike Ashley, who controls Sports Direct, to question their companies' conduct since the lockdown.