Poundstretcher has become the latest high street chain to have its credit insurance restricted, in further signs of trouble on the high street.
According to The Sunday Times, credit insurers Euler Hermes have tightened terms on the discount retailer’s parent company Crown Crest.
Poundstretcher marks the latest big-name retailer to endure a cut in its credit insurance, with New Look and House of Fraser both announcing similar news earlier this year.
Maplin also saw its credit insurance cut before it fell into administration last month.
Credit insurance is designed to protect suppliers from losing money should a company fall into liquidation before they are paid for their order, often acting as a red flag for struggling companies.
Despite this, the discount chain’s owners Rashid and Aziz Tayub assured investors that losing cover from Euler Hermes would not impact the business as most of its suppliers are from Asia, outside of Euler Hermes’ cover.
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