Furniture industry in credit plea

British Furniture Confederation chairman Martin Jourdan has weighed in to the war of words over credit insurers pulling cover demanding government action in a letter to The Times.

His letter said:

“The general and widespread withdrawal of credit insurance is a serious issue that has affected businesses across the UK, particularly those in the furniture industry. Insurance firms now refuse to provide a safety net for businesses that purchase or sell their goods on credit, fuelled out of fear of potential bankruptcies.

“This failure to provide credit insurance is itself a destabilising force, and has the potential to cause a domino-like collapse of businesses that are of a viable and sound nature. However, despite the visibility of this threat, the Government has failed to respond in an adequate fashion.

“Madeleine Moon, MP, tabled a parliamentary question recently requesting the Government to “take steps to assist the furniture industry adjust to the withdrawal of credit insurance”. The Government ignored this request and simply claimed to be “providing a range of support to industry, including the furniture sector to help companies during the current recession”.

“These empty words offer little comfort. We call upon the Government to look again at the issue, and provide support to the many profitable businesses across the country that are threatened by economic timidity.”