Arcadia suppliers have had their credit insurance cut in another blow to owner Sir Philip Green.

Major credit insurer Euler Hermes has written to suppliers in the past fortnight, saying that it plans to reduce the cover it underwrites on product heading to Arcadia stores, according to The Sunday Times.

The development is yet another blow to the retail tycoon, whose high street empire is suffering from the success of the young fashion etailers and international chains.

The business joins a raft of other retailers including New Look, Poundstretcher, House of Fraser and Maplin, all of which have had their supplier credit insurance cut or reduced.

The practice is becoming increasingly common as retailers struggle amid rising import costs, the switch to online shopping and the political uncertainty caused by Brexit.

Arcadia, once viewed as the pinnacle of the high street, has been dogged by poor trading as its consumers switch to the young fashion etailers and to international chains such as Inditex and H&M.

Green’s reputation has been damaged by the fallout from the BHS scandal, which collapsed one year after he sold it to the thrice-bankrupt Dominic Chappell for £1. The government investigation into the sale and subsequent collapse concluded that Green sold the chain to avoid future pension liabilities.