Skip navigation

Gloucestershire Business News

Insurers cancel New Look cover

A key insurer has cancelled New Look's cover against insolvency to its suppliers.

Credit insurer Euler Hermes has stopped selling cover on new shipments of goods to the fashion retailer, which has stores in Stroud, Cirencester, Gloucester and Cheltenham. Other insurers are also thought to have reduced levels of cover for the company, as reported by Retail Gazette.

Credit insurance protects suppliers in the eventuality that a customer goes bust before the payment for an order can be made. Refusing to provide cover demonstrates a lack of confidence in New Look, which has suffered from falling sales. The knock-on effect could be further damage to the company, as suppliers will demand payment upfront when insurance is not available.

BHS, Woolworths and Comet all saw their insurers cancel cover before their collapse, although New Look says it has sufficient assets to get it through the rough patch.

Punchline says this is worrying for the high street as a whole and points towards a tough market in 2018 for all retailers.

Subscribe to Punchline

Related Articles

Major investment revealed as PM praises Gloucestershire firm Image

Major investment revealed as PM praises Gloucestershire firm

When the Prime Minister committed to invest £300million in the UK aerospace industry at this week’s Farnborough International Airshow she also paid credit to an innovative Gloucester business.

£2.2 million of contracts up for grabs Image

£2.2 million of contracts up for grabs

A decision on how to award contracts worth almost £2.2 million could be made tomorrow as Gloucestershire seeks to improve how it supports carers in the county.

£700k boost for canal side cyclists and walkers Image

£700k boost for canal side cyclists and walkers

A popular canal towpath is set to get a major upgrade and its great news for walkers, cyclists and those who want to stay fit.

A look at what’s Next for former cinema site Image

A look at what’s Next for former cinema site

Midas Construction are busy transforming parts of the former cinema site off St Ann Way, Gloucester.

Copyright 2018 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.