Monsoon Accessorize hit by credit insurance woes
Insurer Euler Hermes has cut back on its coverage of Monsoon Accessorize suppliers, following three years of losses at the retail company.
Euler Hermes, which provides credit insurance to suppliers to protect them against the risk of a buyer becoming insolvent, reduced its cover by up to half, according to a report in the the Sunday Times.
The move could see suppliers demand more payment upfront, which in turn could generate cash flow issues at the company.
The once-buoyant retailer has been struggling to survive in the tough retail climate, and has been closing shops in an attempt to cut its losses. Last year, its parent company posted a loss of £12.6m, and rental obligations of £258m.
Founded in 1973 with a first store in London’s Knightsbridge, Monsoon Accessorize is not the only retailer battling against falling sales and nervous stakeholders. Debenhams, Arcadia and New Look have all had their credit insurance cut this year amid fears over the future of the high street.
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