New report uncovers unfair practices in UK brand-supplier relationships

A new survey of UK clothing manufacturers has raised fresh concerns about the way brands and retailers manage their supplier relationships. The research, carried out by the University of Nottingham, the University of Leicester and Transform Trade, gathered responses from 48 tier-one manufacturers across England, Scotland and Wales between March and October 2025.

The findings point to widespread unfair purchasing practices. Many manufacturers reported late payments, order cancellations and last-minute changes to confirmed orders. In several cases, brands requested design or specification changes but did not cover the additional costs. Some suppliers said they were fined for late delivery, even when delays were caused by the brand’s own revisions.

Data from the survey shows that 31 percent of manufacturers had experienced order cancellations. A notable 78 percent said brands failed to pay for costs linked to last-minute changes, while three quarters reported that prices were not adjusted to reflect increases in minimum wages.

Meanwhile, 67 percent said brands reduced order volumes after quoting for larger runs, without increasing the unit price. Payment terms were another pressure point, with 44 percent facing regular extension requests and 10 percent waiting more than three months beyond agreed terms to be paid.

Manufacturers said these practices push financial risk down the supply chain. The impact is often felt by workers, with 73 percent of businesses reporting increased overtime due to sudden order changes, 58 percent cutting hours after cancellations and 29 percent making redundancies.

The report also found little confidence in existing routes for dispute resolution, as legal action is widely seen as too costly. Researchers and campaigners are calling for the creation of a UK Garment Trading Adjudicator, similar to the Groceries Code Adjudicator, to oversee fair purchasing practices and support a more sustainable manufacturing sector.