Insurance is vital to the fashion industry, with a myriad of processesfrom deliveries, orders, cancellations and fabrics being just some of the avenues where insurance is needed.
Euler Hermes, Europe’s best-known trade credit insurance company, has said it will not extend levels of cover to the UK retail sector. It currently provides £7bn of trade credit insurance to companies who supply British stores and retailers, but many companies are looking for higher insurance and more in-depth policies, considering the recent administrations from brands such as La Senza and Peacocks. Brands are looking to protect their operations by having the goods they ship insured against stores not paying for goods.
Euler Hermes told the FT it regards the UK retail sector as a “major concern” following recent high profile administrations.
The news will be of particular concern to independents across the UK, who are being hit by brands changing their credit terms as a result of credit insurance being withdrawn.