Arcadia, Debenhams and GUS Home Shopping amongst others, have all demanded extra discounts from their suppliers after takeovers by private investors. Changing business terms, especially demanding a retrospective discount, has become a standard way of wringing extra cash out of a retail acquisition.

But Debenhams is also making demands of big-name brands and substantial concession operators. There is a sense that by lengthening the payment terms - expected to average around 60 days against just under 30 days in 2002 - and demanding such a large price cut, the department store's new management has taken a step too far.

Suppliers are now looking at how they can change the way they work with high street stores. Suppliers can further protect themselves through a long-term agreement with the retailers, or by standing together as a core group as they will have bargaining power. At worst a store will refuse to do business, but with outside brands lending credibility to the department store's offer, this would be a blow to its high street appeal.