Struggling beauty retailer THG is said to be in even more trouble after one of its leading credit insurers reportedly pulled cover to its suppliers.
British firm Allianz Trade has been reported as the insurer that has cut back its cover for suppliers of THG, formerly the Hut Group, in recent weeks.
According to the Guardian, Allianz has informed THG’s suppliers of its decision, however it has continued to provide cover for them.
Sources of the publication noted that the reduction had been “small” compared with the retailer’s overall level of credit insurance, and had no impact on its financial position.
The decision adds to a number of issues faced by Manchester-based THG in recent years, which saw its stock plunge by 93 percent to 53 pence, taking its worth down from five billion pounds to 667 million pounds.
As a response, a number of its investors have raised concerns about its position, with the likes of Japan’s SoftBank terminating an agreement to purchase a part of its tech company Ingenuity and scrapping its entire stake in THG, amounting to a 450 million pound loss.
In October, the group signed a 156 million pound banking facility, and reported it had about 500 million pounds of cash on hand.
It is the latest retailer to face cuts by credit insurers this year, joining Asos and Ted Baker in being impacted by the move.
A report by Drapers last month stated that Allianz had also lowered its cover for suppliers of the Boohoo group.