The Government is to hold talks with all the major credit insurance companies to discuss independent retailers’ credit insurance campaign.
Credit insurance has become a major issue for indies, as highlighted by Drapers last November when we reported that they faced a credit crisis because of changes to brands’ payment terms due to the withdrawal of credit insurance.
In emails seen by Drapers, Thomas Gelderd, senior policy adviser for business finance at the Department for Business Innovation and Skills (BIS), said he was setting up meetings with major credit insurers over the next few weeks.
A survey in January by Drapers and Labour MP Simon Danczuk, who has been leading the campaign with Paul Turner-Mitchell, co-owner of Rochdale indie 25 Ten Boutique, found that among 244 indies, 77% had seen brands’ credit terms change in the previous 12 months.
At the time Danczuk said he would use the survey to push the issue further up the Government’s agenda.
Last month, a delegation of indies and brands met with the BIS to explain how the issue was affecting them.
Nick Modlani, financial controller of men’s young fashion brand Luke, said: “The withdrawal of credit insurance is cutting off the lifeblood of indies and the smaller brands that are struggling to grow with them.”
Gelderd was unavailable for comment.