DSGi plays down credit insurance concerns

Retailer says it and suppliers will be unaffected by provider's reduction in coverage
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DSGi has played down suggestions that it has had its credit insurance withdrawn, after reports emerged that its provider Atradius had pulled coverage on stock sold to the retailer.

However, the firm did admit that it had been affected by a wider decision by the insurance to reduce insurance across the spectrum of retail and played down the impact it would have on its business.

In a statement issued to CRN, the retailer said: "Whilst it is true Atradius have reduced, but not withdrawn, credit insurance across the retail sector, this is not a DSG-specific issue. This is more about Atradius and how it manages its business."

It was also keen to stress that the move would not affect Christmas stock. "Our suppliers still have access to credit insurance, they continue to supply us and there have been no changes to our terms with suppliers," the firm added.

The news comes just over a fortnight after another credit insurer Moodys motioned that it might downgrade DSGi's credit rating, as reported by PC Retail.

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Credit's due

It might sound like a small detail to those not in the game, but any retailer responsible for a large chain of shops ? indeed, even just a single store retailer ? will tell you just how fundamental credit is to the vitality of the business.