A turnaround of the troubled BHS department store chain could be hampered as suppliers have reportedly had their credit terms tightened by credit insurance firms following the chain’s takeover by new owner, Retail Acquisitions.
Some of the business’ largest suppliers have had cover reduced or withheld altogether following the takeover from Sir Philip Green in March, the Sunday Telegraph revealed.
Among those thought to be affected include a major Hong Kong-based clothing manufacturer. The move could hit newly-promoted chief executive Darren Topp’s aim to compete with the likes of Primark and Marks and Spencer.
Without trade credit, suppliers could be left out of pocket if BHS was to run into financial difficulty and is left unable to pay bills.
The little-known buyout vehicle Retail Acquisitions comprises a group of lawyers, accountants and financiers.
In March, BHS promoted Topp from chief operating officer to chief executive, replacing Richard Price who moved to F&F as the brand’s new clothing boss. BHS continues to look for a new chairman and finance director.