Poundstretcher faces tighter insurance terms for suppliers in the latest sign of tough times for high street retailers.
Leading insurer Euler Hermes has reduced credit cover for the variety discounter’s parent company, Crown Crest Group, The Sunday Times reported at the weekend.
Credit insurance covers suppliers against a retailer collapsing between order and payment. A refusal of cover can result in demands for payment upfront, increasing pressure on retailers.
Crown Crest, a holding company for Aziz and Rashid Tayub, based in Leicester, went from £3.4m profit to a £3.5m loss in 2017.
Maplin faced a cut to its credit insurance cover before entering administration last month.
New Look and House of Fraser also announced earlier this year that credit insurance had been withdrawn.
Poundland, the pound shop market leader, had problems with credit insurance before Christmas, amid concerns linked to its South African parent company.
Crown Crest said the insurance cut would have little impact on the business as most suppliers were from Asia and not covered by Euler Hermes.
No comments yet