Discount department store chain TJ House is on the brink of collapse, just three months after its suppliers reportedly had its trade credit insurance pulled.

Euler Hermes is understood to have deemed trade credit covering the store too risky a policy to insure at the end of March.

TJ Hughes will appoint administrators unless a buyer can be found within ten days.

Euler Hermes does not disclose information relating to clients, but the UK’s largest trade creditor maintains that it only pulls cover if a business is in deep trouble. Euler Hermes says it is protecting its policyholders, the suppliers, from risk.

TJ Hughes is among a clutch of High Street stores that have suffered badly as rising inflation, Government cuts and consumer belt tightening take effect.