Credit insurance, or a lack of it, has been one of the biggest talking points of 2008. A number of high street names, including Mosaic Fashions, JJB Sports and footwear chain Faith, had their credit insurance for suppliers pulled, leaving their suppliers with cash flow difficulties and the retailers in danger of running out of stock.
This caused some suppliers to make the potentially business-shattering decision as to whether to self-insure or operate with a depleted order book. Indies and brands have also been affected by credit insurers generally up-risking the retail sector.
Fabrice Desnos, UK head of Euler Hermes, one of the world’s biggest providers of credit insurance to the sector, has been the most vocal of the insurers, but fellow insurers
Atradius and Coface have also slashed cover this year.