Associated British Foods PLC’s (LON:ABF) Primark has agreed with Asian suppliers to pay £370mln for stock despite shop closures.
It adds to £1.5bn worth of clothes and homeware that is sitting in the retailer’s depots, the Evening Standard reported.
READ: Fashion retailers to see "very painful" summer clearance as stock must go
The fast-fashion firm sparked controversy last month when, as lockdowns to stop the coronavirus pandemic were enforced, it refused to pay for items already made and shipped by producers in Asia.
The chain works on 30-day payment terms.
“We have been in close and regular contact with our suppliers over the last few weeks to find a way forward, and to pay for as much of the previously ordered product as possible,” Primark’s chief executive Paul Marchant said.
“Our partnerships with our suppliers are invaluable and we want to continue to support them as we navigate our way through this global crisis.”
Shares in AB Foods dipped 1% to 1,969p on Monday afternoon.