Belfast Telegraph

No cash crisis over supplier insurance, says Debenhams

By PA and Michelle Weir

Department store Debenhams, which has five branches in Northern Ireland, has insisted it had "constructive dialogue with credit insurers", despite claims that some cover has been reduced.

According to the Sunday Times, Euler Hermes reduced its cover and credit insurers Atradius and Coface have reportedly refused to cover new shipments in recent days.

The chain has already issued three profit warnings throughout the year.

Credit insurance protects suppliers against the risks of a customer going bust between the moment of accepting an order and payment being made.

The store said: "Debenhams has a healthy balance sheet and cash position.

"All the credit insurers continue to provide cover to our suppliers and we maintain a constructive relationship with them.

"It is well-documented that market conditions are challenging.

"But Debenhams continues to be profitable, has a clear strategy in place and is taking decisive actions to strengthen the business."

Belfast Telegraph

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