Two of the largest names in the UK channel have been hit by credit reductions by Euler Hermes.
Ebuyer and Westcoast both saw their credit cover slashed as the firm looks to reduce exposure to the increasing numbers of high profile retailers and businesses going to wall.
Ebuyer, which was also hit by a 50 per cent reduction in credit cover by Atradius, has played down the impact that the reductions will have on its business.
Blaming the reduction – which was based on preliminary results released to the insurers – on its troubled TV assembly business, eBuyer’s financial controller Malcolm Healy told Microscope that "we didn’t do a good job and that affected our figures." However, he was keen to stress the change in credit cover would not have "any real impact. We are trading well and everything is fine."
Meanwhile, Westcoast has confirmed that it has had its cover reduced by Euler on several of its credit lines, but stressed that the move would have no impact on the operation of its business.
Speaking with CRN, Westcoast’s chairman Joe Hemani said that the change would have "minus zero" impact on the firm. "The cover has been reduced to a level commensurate with what they require to trade," he said. "There is not a single supplier that wants cover and does not have the cover to trade with Westcoast."