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Topps loses safety cover for suppliers
17.02.09
Topps Tiles today became the latest retailer to have cover withdrawn by its lead credit insurer, a move it said could affect its top three or four suppliers.
Credit insurance provides financial safety cover for suppliers as they wait for the six to eight weeks it takes their retail customers to pay them.
The withdrawal of credit insurance was one of the key factors in the collapse of Woolworths and Land of Leather. But Topps today said it expects “business to continue as usual”.
It added that about 60% of its supply of tiles came from people who had never used credit insurance, and pointed out that it continued to generate positive cashflow despite the downturn.
Topps' shares fell 4p to 171/4p.
