Debenhams suppliers see credit insurance reduced
Credit insurers have reduced cover for suppliers to Debenhams, which has issued three profit warnings this year.
Euler Hermes, Coface and Atradius have decreased cover for suppliers, according to The Sunday Times.
However the department store chain has insisted that still have some degree of protection against not being paid and it has a ‘healthy’ cash position.
‘Debenhams has a healthy balance sheet and cash position. All the credit insurers continue to provide cover to our suppliers and we maintain a constructive relationship with them. It is well-documented that market conditions are challenging, but Debenhams continues to be profitable, has a clear strategy in place and is taking decisive actions to strengthen the business,’ said the 176 store chain.
The group expects to make between £35m and £40m this year – well below forecasts – and is looking to sell its six-store Danish subsidiary Magasin du Nord.
Rival House of Fraser is heavily discounting as it prepares to close more than half its branches while John Lewis expects to only break even in the first half of its financial year.