Drapers understands the issue has existed since the start of the year.
One source close to the etailer said: “This has been an ongoing issue since 1 January. Almost all the company’s suppliers are still demanding payment.”
A SecretSales supplier told Drapers that he has been chasing for payments for shipped stock for the past two months. He said: “It’s now March and we have been chasing for two months. They are not communicating regarding the settlement of seriously overdue invoices, or communicating regarding the return of stock that has not been paid for. No-one is answering emails or the phones.
“Our stock is being held to ransom.”
Drapers revealed earlier this week that the flash Sale site has made redundancies at its head office and other business functions as it repositions to a marketplace model.
The company axed 18 roles across its headquarters in London and its two remote offices. The roles are across the buying, digital and logistics teams.
The redundancies are thought to account for more than 20% of the company’s total headcount.
It comes after the company was sold to platform business Lifestyle Retail Group (LRG) in August last year, for an undisclosed amount.
SecretSales was approached by Drapers for comment.