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Suppliers for the Very Group have seen its credit insurance pulled by Allianz Trade amid concerns around the retailer’s falling profit, according to reports from Drapers.
It has been reported that the decision to withdraw cover was due to macro-economic pressures as consumers reduce their spending.
Very Group saw its profits fall 17% down to £123.8m for the 39 weeks to 1 April 2023.
Furthermore, group sales remained flat at £1.6bn as a result of a 2.5% dip in retail sales because of the “heavily promotional environment”.
A spokesperson for Very told Drapers: “One of several providers of credit insurance to our suppliers has reassessed its cover with respect to The Very Group.It has done the same with several retailers due to its view of the market. We continue to see other credit insurers maintain or increase cover with respect to the group.
“We continue to have constructive relationships with our suppliers, and our year-to-date Q3 results show Very revenue growth of 2.2% – ahead of the online non-food retail market – and a robust liquidity position.”
This news comes after Allianz cut its cover for supplies of Boohoo by an average of 50% in July while some suppliers of the brand had the cover removed entirely.
