Credit insurance lowered for Boohoo suppliers
Allianz Trade is believed to have reduced cover by 50% for the suppliers but some claim to have had their coverage cut to zero
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Leading credit insurer Allianz Trade has lowered cover for Boohoo’s suppliers following the financial pressures faced by the retailer, The Times has reported.
The Times said it understood that Allianz Trade has reduced cover by 50% for the suppliers so far, although some have had their coverage cut to zero.
The insurance firm’s decision was made based on factors including diminished consumer demand as well as macro-economic challenges.
Recently, Boohoo reported a 10% decrease in sales to £882.4m and now expects EBITDA margins for its full-year to come between 3%-5%, compared to the 4%-7% expected previously.
The fast-fashion retailer attributed the recent trading performance to rising costs of freight and logistics, high cost of inflation as well as the company’s own investment choices.
Allianz Trade and Boohoo have been contacted for comment.
