Richard Caring ‘apologises for demanding mandatory discount from suppliers’

Richard Caring has apologised to suppliers of his hospitality businesses after they were sent a letter saying a mandatory 2.5% discount would be applied to their invoices.

The Caterer has seen a note sent to suppliers of Bill’s, the Ivy Collection, Caprice Holdings and Birley Clubs (which includes Annabel’s and Harry’s Bar) earlier this month, informing them they would not be paid in full until further notice.

The letter, sent by head of indirect and beverage procurement Jeremy Evans, said the businesses was experiencing “many challenges regarding increased cost” and asked “supplier partners to work with us as we support each other through this difficult period”.

Following backlash from suppliers Caring told The Times the letter had not been approved and was “totally incorrect”.

“This letter should not have been written in the manner that it was. I had not seen it and certainly had not approved it. I want to apologise to our suppliers for the letter, which is totally incorrect,” Caring told the paper.

“I want to make it clear that at no time would we put this into operation without the full agreement of each supplier and at no time should we have suggested a mandatory positioning.”

According to The Times, the cuts are not being reversed completely but Caring’s firm will work with each of its suppliers on a decision.

The entrepreneur encouraged any suppliers with concerns to contact him and said he hoped to “successfully work together into the future hand in hand”.

A spokesperson for Caring’s empire said on Friday: “The letter makes it very clear that if any suppliers have any concerns they should contact us and we will speak to them.”

The apology comes as Caring is in talks to sell part of his UK hospitality empire, including the Ivy Collection and Mayfair club Annabel’s, for over £1b.

The entrepreneur is looking to sell to International Holding Company (IHC), an entity controlled by Abu Dhabi royal Sheikh Tahnoon bin Zayed al-Nahyan, according to the Financial Times.

IHC is one of the most valuable companies on Abu Dhabi’s stock exchange and already has various hospitality investments, including Greek luxury resort chain Nammos.