|
|
|
04 Dec 2008
Distribution powerhouse Westcoast has confirmed that Euler Hermes has reduced cover on several of its supplier credit lines, but has stressed that the move will not effect its business.
It is believed the broadliner is one of several IT accounts to which Euler has reduced exposure in recent weeks after conducting a case-by-case review of its UK business. The news came after the credit insurer announced it had cut its profit forecast for the fourth quarter after taking a hit from the collapse of Woolworths.
Westcoast chairman Joe Hemani insisted that the move would have “minus zero” impact on its business.
Further reading
“The cover has been reduced to a level commensurate with what they require to trade. There is not a single supplier that wants cover and does not have the cover to trade with Westcoast,” he said.
Alastair Edwards, senior analyst at market watcher Canalys, said credit insurers could be over-reacting.
“Credit insurers tend to take a conservative approach during periods of uncertainty and it does not help the industry. It exacerbates the feeling of panic,” he said.
“To some extent the onus is pushed onto vendors to support their most important partners through payment terms, credit or reduced targets.”
Euler chief executive Fabrice Desnos declined to comment.
Related articles
In this video find out about the fast-growing Chinese vendor's plans for market domination and how the channel is its route of choice
Find out what gifts Acer has in store for partners for 2012 in this exclusive roundup of its recent conference
CRN's premier networking event is back on 17 May at the Ricoh Arena
Date: Thu 17 May 2012
Channel fighters preparing to square up once more on 24 May
Date: Thu 24 May 2012
The proliferation of endpoint devices within the enterprise has highlighted the shortcomings of one of the traditional approaches to data security
This Forrester report compares the costs and benefits of legacy email and productivity software with Google Apps
A power failure has caused CRN HQ to relocate remotely - I won't be so blase about disaster recovery now
Mark Needham, founder of distributor Widget, argues that John Browett leaves for Apple with Dixons in better shape than when he arrived
|
|
|
Do you agree?
Have your say