One of the UK’s three biggest credit insurers has withdrawn cover for suppliers to several Baugur-backed retailers as the situation in Iceland worsens.

Credit insurer Coface is understood to have withdrawn cover due to the slowdown on the UK high street as well as the banking crisis in Iceland.

Coface credit insurance director Ian Hollyhomes told The Times: “We have reviewed parts of Baugur Group and have decided to withdraw or reduce cover in some instances.”

Another credit insurer, Atradius, is also talking to Baugur about each of its companies.

Baugur yesterday reassured that the crisis in Iceland would not affect its UK businesses. It said: “In response to developments in the Icelandic banking sector, we would like to make clear this will have no impact on Baugur’s operations or portfolio companies.”

The three big credit insurers, Coface, Euler Hermes and Atradius, have also said they would not cover suppliers to Woolworths. Coface also said it would not cover suppliers to JJB.

Topics