The reduction of trade credit insurance indicates harder times ahead for Debenhams

Drapers has published an article which examines the difficulties that recent cut-backs to Debenhams’ credit insurance cover may precipitate. Retail analyst Richard Hyman suggests that the reduction of credit insurance at the retailer could be a sign of worse to come. “Credit insurance is a key indicator of trading pressure. Usually, credit insurers receive trading numbers from the retailer, beyond what is in the public domain.” He continued: “Reducing credit insurance suggests the insurers have seen a deterioration in trading. Otherwise, why else would they reduce cover?” To read Drapers’ article go to https://www.drapersonline.com/news/product-and-pricing-key-for-debenhams-say-experts/7031328.article.