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Euler halves credit for DSGi suppliers

Paul Kunert

DSGi has been dealt a blow following the decision by Euler Hermes to halve the credit insurance it provides to suppliers of the retail giant.

The largest underwriter in the UK channel, Euler had originally planned to review DSGi's lines in January but the collapse of Woolworths is believed to have cost the insurer £51m and forced it to bring forward a meeting.

While Euler's decision on DSGi will not impact the availability of kit over the festive period, it could have implications for next year as some suppliers are unwilling to offer credit beyond uninsured levels.

A spokesman at DSGi played down the impact that the reduction in credit insurance would have on its business and insisted there had been no changes to Ts&Cs with suppliers.

"As everyone is aware credit insurers have been reviewing the level of insurance provided to suppliers across a number of industries, including retail, this is not a DSGi specific issue," he told Microscope.

Only last month, Atradius decided to reduce its cover on DSGi demonstrating the nervousness with which the underwriters view the retail sector.

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