Atradius reduced its cover offered to Debenhams suppliers earlier this year along with other insurers 

Debenhams has had its credit insurance cut completely by Atradius following a previous reduction. 

In July Insurance Times reported that insurers, including Atradius, had reduced the cover offered to the store’s suppliers.

The insurance is designed to protect against the risk of a customer going bust in the time between an order being made and the completion of payment.

Cutting credit insurance could see those suppliers demanding payment upfront.

A spokesperson for Debenhams, said: “Regrettably, we understand Atradius is reducing cover as a result of repeated press speculation about Debenhams.

“Credit insurers typically tighten cover when the retail industry is under pressure, and this is an issue affecting many retailers. We are managing this ‎with our suppliers and continue to maintain more than adequate headroom on our facilities.”

Last week Arcadia, owners of Topshop risked having its credit insurance cut by Euler Hermes.

Debenhams said it is still profitable and will continue trading.

Atradius provides trade credit insurance, surety and collections services globally, it declined to comment.