Peacocks suppliers have had their credit insurance cover slashed according to The Independent newspaper.
Euler Hermes, the UK’s biggest trade credit insurer, said in a letter that it was cutting the amount of insurance cover given to some suppliers that provide clothing to Peacocks by up to 90%.
Peacocks chief executive Richard Kirk told the newspaper: “It is the wider clothing sector the credit insurers are withdrawing cover on.”
He added that Peacocks sourced much of its stock directly from factories so the number of suppliers requiring credit insurance was minimal.
Peacocks is the latest retailer to be affected by credit insurers tightening up on the retail sector. Credit insurance companies pulled their cover for a raft of retailers including JJB Sports and businesses in Baugur’s portfolio over the last couple of months.