BIBA issues the plea after the collapse of Palmer and Harvey
The credit insurance market is set to pay big claims to unpaid suppliers, claims Biba, after food and tobacco wholesaler Palmer & Harvey went into administration.
P&H had sales of more than £4bn and its demise comes at its busiest time of the year, as Christmas sales peak.
PwC, which has been advising P&H, has confirmed that 2,500 jobs may be lost.
Mike Hallam, BIBA head of technical services commented: “Without suitable insurance in place many other companies would also have been adversely affected by this collapse. This serves to show the value of trade credit insurance which is available from many insurance brokers.”
P&H, which is the UK’s largest tobacco supplier, had been struggling with debts and owed substantial sums to key suppliers.