Foodservice Footprint Unknown-126 News Alert: Wetherspoon To Pay Supplier Invoices Due On Monday Foodservice News and Information Out of Home sector news

News Alert: Wetherspoon To Pay Supplier Invoices Due On Monday

J D Wetherspoon has said that it will settle supplier invoices due at the end of March, but those due next month face an anxious wait.

In an email sent to suppliers and seen by Footprint, the pub chain said clarification from the government on its Coronavirus Job Retention Scheme has “greatly helped our financial planning. As a result, we will be paying invoices that are due for payment on Monday March 30, more or less on time.”

The email marks a dramatic U-turn. On Tuesday, as reported by Footprint, the chain had emailed suppliers asking for a “moratorium on payments, until pubs reopen”. One senior industry source said suppliers were likely to “go down” if payments for goods already provided are withheld for weeks or even months.

The news – subsequently picked up by many national news outlets – left the company facing a fresh backlash. Tim Martin, the chairman, was already under fire following reports that his 43,000 staff would not be paid.

The letter will provide a lifeline for some suppliers. However, there were no such reassurances for those who have sent invoices this month and will be due payment at the end of April. “We’re still not sure about the position for March invoices,” the letter reads. “We will be working on this in the next few days and weeks.”

The chain apologised for “the uncertainty that the closure of our pubs has created”. But there is little doubt this week has caused serious, and perhaps longlasting, damage to the Wetherspoon brand.

Staff, meanwhile, remain in limbo. Earlier this week workers were told the business could not afford to pay them while pubs are closed until it receives money under the government’s job retention scheme, whereby the state will cover 80% of wages.

According to the BBC, Wetherspoon has confirmed it will be paying staff today, with the expectation that the government’s scheme will kick in next Friday, April 3rd.

HM Treasury this afternoon published new guidance on the scheme. The government will cover the costs of employer national insurance and pension contributions for businesses furloughing staff during the coronavirus outbreak. Those furloughed can also volunteer for the NHS without risking their pay.

However, the expectation remains that the scheme will “be up and running by the end of April”, according to the government’s website.