The retail group is attempting to cut costs in response to the current economic climate, but the FPB claims that they are doing this at the expense of their suppliers - many of whom are smaller companies who are also struggling with the economic downturn.

"The fact that this latest charge is being justified to fund initiatives like marketing and international expansion adds insult to injury for many smaller firms, which are struggling to control essential costs as the economic downturn continues," stated Phil Orford, Chief Executive for the FPB.

"I feel sure that many suppliers are already asking why investment can't be funded by the substantial increase in profits recently announced by Matalan. The FPB took Matalan to task two years ago for imposing a similar charge which, it insisted, was a ‘one-off'. Clearly, Matalan has an ongoing policy of blatant and sustained abuse, using its size and power to make more money at the expense of its supplier base."

Matalan have joined other large companies such as Alliance Boots, Argos and Tesco in the FPB's 'hall of shame'.