Euler Hermes adds to the list of companies it won’t cover
Topps Tiles has announced that an unnamed credit insurer – said by the FT to be Euler Hermes – has refused to cover its suppliers and the FT says steel giant Corus has had credit cover from Euler Hermes pulled too.
Topps said: “Following a review of its exposure to the retail sector in light of the uncertain outlook for the UK economy, one of the providers of credit insurance to the company's suppliers has informed the company that it is to withdraw credit insurance cover for the company's suppliers.
It said few of its suppliers relied on credit insurance so it did not expect to be affected. “The withdrawal of credit insurance in relation to Topps has not had an impact on the board's expectations for the trading performance of the business in the current financial period,” the company said.
The FT said Euler Hermes refused to comment on individual companies when asked about Topps Tiles but quoted the company explaining its Corus decision as saying: “We have reduced our exposure following the well-documented reduction in needs due to reduced activity levels and a collapse in prices. This has been happening across the whole sector.”