Womenswear group Aurora Fashions has had its credit insurance cover reduced by leading credit insurance companies.
Drapers understands that suppliers to womenswear business Warehouse, which is owned by Aurora Fashions, has been having problems securing credit cover.
One supplier to Warehouse said: “I can’t get credit insurance on Warehouse although their payment terms are still at 60 days. I have no choice but to continue supplying them.”
Reports in the Sun this morning (April 10) suggest that the issue is not just limited to Warehouse but that the issue with credit insurance applies to all of Aurora’s retail fascias which include Oasis, Coast and Karen Millen.
One of the main credit insurance companies, Euler Hermes, is thought to have reduced its cover to all of Aurora’s businesses.
The reduction is understood to have come about following the restructure of Aurora, which was announced in March.
Aurora’s chief financial officer Richard Glanville said: “Credit insurers are reducing their exposure to the retail market generally, and we are no exception. However, we have very longstanding relationships with a limited number of suppliers and have not experienced nor anticipate experiencing any issues in our supply chain.”