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Newspaper report suggests Debenhams' suppliers have had cover reduced
Suppliers to Debenhams, the department store chain, have seen credit insurance cover reduced in recent days and weeks, according to The Sunday Times.

 

Without citing sources, the newspaper said today (Jul. 15) that terms have been tightened by insurers including Euler Hermes, Coface and Atradius.


Trade credit insurance provides comfort to suppliers, guaranteeing them cash in case a retailer does not pay its bills for goods supplied to them on credit.


Suppliers' inability to get cover can present liquidity problems for retailers, who face the prospect of paying for goods upfront or struggling to persuade companies to supply them.


In recent months, Debenhams has been transitioning away from own-bought furniture categories, preferring instead to partner up instead with third-party operators.


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