More retail insolvencies ahead
- Published: 04 June 2008 10:03
- Author: Laura Weir
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- Last Updated: 04 June 2008 17:27
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The world's biggest credit insurer, Euler Hermes, has warned that there are more retail administrations on the horizon as trading conditions worsen.
Euler Hermes' UK chief executive Fabrice Desnos told The Times newspaper that there was now a 15% greater chance of retailers being unable to pay suppliers than this time last year.
"We see more insolvencies. It's like shaking a tree – the weakest fruits will fall and it will do so for a reasonably long amount of time," he said.
Euler Hermes, part of Allianz, is the world's largest credit insurer and analyses thousands of businesses across the UK to assess the risk of them defaulting on payments to suppliers.
Desnos declined to comment on specific companies but said that retailers were facing the toughest economic climate since the 1990s. He added: "There's a lack of available financing, and companies who are highly leveraged have a particular weakness in their business model."
