Credit insurer Euler Hermes has signalled more retail administrations on the horizon as trading conditions continue to worsen on the high street.
Euler Hermes UK chief executive Fabrice Desnos told The Times that there was now a 15 per cent greater chance of retailers being unable to pay suppliers than this time last year.
“We see more insolvencies. It’s like shaking a tree – the weakest fruits will fall and it will do so for a reasonably long amount of time,” he said.
Land of Leather has confirmed that Euler Hermes has stopped providing cover to its suppliers. At the weekend, the cover given to ad agencies for MFI and another furniture retailer were also withdrawn.
Euler is the world’s largest credit insurer and analyses thousands of businesses across the UK to assess the risk of them defaulting on payments to suppliers.
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