Troubled THG has suffered another blow after an insurer cut back coverage for its suppliers.
Allianz Trade, a leading UK credit insurer, has in recent weeks reduced the amount of cover for the ecommerce group’s suppliers.
Suppliers use credit insurance to protect themselves if a company goes bust between placing an order and paying for it.
Pressure: Allianz Trade’s decision cut back coverage for THG’s suppliers is the latest headache for the firm and its founder Matt Moulding (pictured with wife Jodie)
If coverage cannot be secured, they will usually demand payment for orders upfront, increasing the pressure on a company’s cash reserves.
Allianz informed THG’s suppliers of the decision over the last few weeks, although it will still provide some cover and has not cut it off entirely.
Clothing brands Asos and Ted Baker saw cover cuts among their suppliers alongside online white goods seller AO World.
Allianz also cut coverage for suppliers of fast fashion firm Boohoo last month.
The insurer’s decision is the latest headache for THG – previously known as The Hut Group – and its founder Matt Moulding.
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