11/13/2008 10:27:00 AM
Atradius credit insurer reduces coverage at DSG
Electronics retailer DSG said its suppliers would be unaffected by the decision of one of the biggest credit insurers to reduce the amount of insurance it will give for products being stocked by DSG.
Credit insurance giant Atradius provides insurance for suppliers against unpaid stock for a range of different retailers. This means that suppliers will now have to look at other companies to cover their stock risk at DSG outlets.
Currys digital and PC World are under the DSG umbrella and have several laptop providers putting stock into their stores.
Operators including 3 and Vodafone also have mobile broadband deals in the business.
A spokesman for DSG said: ‘Atradius is only one provider of credit insurance in the market. While it is true Atradius has reduced, but not withdrawn, credit insurance across the retail sector, this is not a DSG-specific issue. This is more about Atradius and how it manages its business.’
The move comes after Atradius and its two biggest credit insurance rivals also dropped Woolworths, leading Vodafone and O2 to say they were monitoring the retailer, and 3 to say it was reviewing the account.
Recent revelations surrounding DSG suggest a wider anxiety concerning UK retail.
The DSG spokesman added: ‘Our suppliers still have access to credit insurance, they continue to supply us and there have been no changes to our terms with suppliers.’