11/6/2008 11:18:00 AM
Operators watching Woolworths as credit insurers pull out
Three of the main credit insurers have stopped covering risk on stock into Woolworths. The retailer said it will not be affected by the withdrawal.
The statement comes as three networks said they are monitoring Woolworths.
O2 and Vodafone both gave Mobile similar statements saying they are ‘monitoring the situation’, and it is also believed that 3 is reviewing its account with the retailer in light of the withdrawal from credit insurers.
The withdrawal of Coface, Atradius and Euler Hermes means that suppliers into Woolworths no longer have advanced cash or stock covered by insurance, prompting some sources to admit they are demanding tighter terms.
A spokesman for the retailer said: ‘Woolworths continues to work closely with suppliers and credit insurers in what is clearly a difficult environment for the retail sector. While it is true that some credit insurers have tightened terms of trade, we are trading as normal with our suppliers and will continue to do so.’