Coface pulls suppliers' cover as financial health is questioned.
Financial worries have deepened for Woolworths’ after French-owned Coface withdrew its credit cover to the retailer’s suppliers.
The Financial Times said the move, which follows similar action by Euler Hermes and Atradius, means none of the big credit insurers now cover suppliers of Woolworths’ high street retail business. Only Euler Hermes is still involved with EUK, Woolworths’ entertainment distribution network.
As a result, wholesalers might order Woolworths’ to deliver faster payment in case it can’t pay its bills. There is also the danger that they could stop supplying it completely.
