AO suppliers 'furious' after white goods firms raises concerns over Dixons terms

Online white goods firm AO has written to suppliers asking them to clarify whether Dixons get better terms than they do, The Independent understands.

However, some suppliers were left furious at being sent the letters and responded saying they would never discuss arrangements with rival businesses.

The letters were sent after Dixons, owner of Currys PC World, claimed its products were 3 per cent cheaper than online-only rivals, such as AO, and that they had better relationships with suppliers.

The suppliers were asked if there was any truth in the claim and asked for a meeting if there was.

AO management decided to write to suppliers after they were questioned on the claims by potential investors on a roadshow that led to the company’s flotation last month, which netted founder John Roberts £86m.

Since listing, analysts and investors have suggested the company’s £1.5bn valuation is the start of another internet bubble, however, management have said they plan on becoming the biggest white goods business in Europe.