DSG international (DSGi) has moved quickly to play down Euler Hermes’ decision to slash its credit cover for the second time this year.
The reduction has affected several big distributors, one of which claimed his cover into the retail giant had been cut by 50 per cent this week.
In a recent interim management statement, DSGi said sales for the important 12-week period to 10 January had plunged by 10 per cent year on year (Channelweb, 15 January). The retailer also had its credit insurance reduced by Atradius late last year.
Euler Hermes has emphasised in recent months that it will not take a broad-brush approach to struggling sectors such as retail, instead reducing exposure to what it considers as high-risk accounts.
But DSGi maintained it has been caught up in a wider retail crackdown.
“As everyone is aware, credit insurers have been reviewing the level of insurance provided to suppliers across a number of industries, including retail. This is not a DSGi-specific issue,” it said.
“As market leaders, we are an important route to consumers for our suppliers' products and we have seen no change in our overall terms with our suppliers.”
For the full story, see the next issue of CRN.
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