A score of House of Fraser’s suppliers will be adversely impacted by a credit insurer’s decision to stop offering cover.
A spokesperson for House of Fraser said 20 of the business’ 650 suppliers were affected by the credit insurer’s decision to pull cover, which was made about a month ago.
The affected suppliers will now be forced to either find new insurance or demand upfront payments for their goods from House of Fraser.
The news further highlights the difficulties faced by the department store retailer following a disappointing set of Christmas figures and a downgrade of its credit rating by Moody’s.
House of Fraser also asked several of its landlords for rent reductions last month, prompting further questions about its financial health.