Specialist retailer Topps Tiles has had credit insurance withdrawn to its suppliers by an unnamed insurer.

In a statement issued today, the retailer said: “Following a review of its exposure to the retail sector in light of the uncertain outlook for the UK economy, one of the providers of credit insurance to the company's suppliers has informed the company that it is to withdraw credit insurance cover for the company's suppliers”.

The retailer said that it does not expect the withdrawal of credit insurance to have a material impact on the business and said its key suppliers “remain supportive”.

It added that it did not believe that a significant amount of its other suppliers rely on credit insurance.

It reiterated that its lending banks also remain supportive and that the business is continuing to maintain its cash balances. It has undrawn overdraft facilities and continues to generate cash at the operating level.

The decision to withdraw credit insurance to suppliers to the retailer will not affect management’s expectations for the trading performance of the business in the current financial period, it added.