Supplier fallout at Debenhams14 Nov 2018 14:20
Some high street suppliers have stopped working with Debenhams over fears of missed payments and following cuts to its credit insurance, Drapers has learned.
It is understood that two London-based suppliers have walked away from Debenhams and another has reduced its exposure after credit insurance for the retailer was reduced by several leading providers, including Atradius, Euler Hermes and Coface.
Earlier this month, credit ratings agency Moody’s downgraded its long-term outlook for Debenhams from B2 to Caa1, and changed the “probability of default” rating – which measures the relative likelihood that a company will default on one or more of its debt obligations – from B2-PD to Caa1-PD.
“They owed us so much money at any one time, we decided it was too risky,” one supplier told Drapers. “It’s not worth it. I know other suppliers are nervous about going forward with Debenhams, [and] we were in the same boat. It could be a disaster for them.”
https://bit.ly/2QGNRiJ