By Emily Bencic
Woolworths will face court today (Monday) after the Australian Competition and Consumer Commission (ACCC) alleged that the company developed a strategy to reduce a $50 million short-fall in its first-half gross profits by demanding more than $60 million cash from suppliers, outside formal trading agreements. The ACCC launched the proceedings in December 2015.
The ACCC proposed the following allegations:
- Woolworths developed a strategy, approved by senior management, to urgently reduce expected significant half year gross profit shortfall by 31 December 2014.
- Woolworths designed a scheme, referred to as “Mind the Gap” to systematically obtain payments from a group of 821 “Tier B” suppliers.
Read more here.
This story first appeared in Appliance Retailer.
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