21 September 2006 | Gareth Mytton

Discount clothing and homewares retailer Matalan hopes to boost its cash flow by at least £25 million after renegotiating terms with overseas suppliers.

The company has recently been criticised for imposing a mandatory 2 per cent deduction on payments to suppliers. The Department of Trade & Industry is continuing to examine this dispute (see Web news, 24 May and 21 July).

Matalan would not give details of the new terms but has said it offers guaranteed volumes to some suppliers.

In its trading statement, issued this month, Matalan predicted it would see the increase in cash flow by the end of the financial year.

The retailer has also changed its homewares buying team and appointed a new buying controller, Sarah Harbour. New products will account for 59 per cent of the homewares range, containing 40 per cent fewer items than before.

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