House of Fraser credit insurer pulls plug on supplier cover

A credit insurer has decided to stop offering cover to a score of House of Fraser’s stockists.

The department store chain confirmed that about 20 of its 650 suppliers would be affected by the decision, which was made a month ago.

The cover is seen as standard in the retail sector and provides suppliers with protection in case a retailer cannot pay its bills.

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The news comes amid troubling times for House of Fraser, which reached out to landlords earlier this month to slash the rents on some of its UK outlets.

The retailer has also recently had its credit rating downgraded by investor agency Moody’s following three consecutive quarters of poor financial results.

The latest trading report shows that sales tumbled 2.9% in the six weeks to December 23 after it reported a half-year loss in September.

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