Euler Hermes pulls credit cover for New Look Suppliers, while QBE reduces its level of cover
QBE has confirmed that it has reduced its level of cover for the high street and online retailer “in places”, but has not stopped providing credit insurance for New Look.
However, retail fashion industry news source The Draper reports that Euler Hermes has pulled trade credit cover for New Look suppliers.
It has been a torrid year for New Look, with its adjusted EBITDA dropping by almost three quarters (72.2%) year on year, to £24.2m. The retailer, which is owned by South African investment company Brait SA, has reportedly gone from being £59.3m in profit the prior year, to having an underlying operating loss of £10.4m.
In December, South African-owned Poundland saw its suppliers’ trade credit cover reduced by Atradius, leading to rumours that Euler Hermes would follow suit.
Insurers recently saw big claims with the collapse of wholesaler Palmer & Harvey.
Euler Hermes has been contacted for comment.