Debenhams has had its credit insurance cut by a leading provider.
Insurance provider Atradius has axed the cover it provides to Debenhams’ suppliers.
In July, Debenhams had its credit insurance reduced by several leading suppliers, including Atradius, and it is now reported that the supplier has cut its cover completely.
The news follows reports last week that Topshop owner Arcadia faced having its credit insurance cut by Euler Hermes.
A spokesperson for Debenhams said: “We understand Atradius is reducing cover as a result of repeated press speculation about Debenhams. We are managing this with our suppliers and continue to maintain more than adequate headroom on our facilities.”
Despite the concerns, the business remains profitable, and expects to make a profit of £33m this year. Last week Debenhams unveiled its new location at the Intu Watford shopping centre.