Rosebys chief executive David Barrett told Retail Week trading had been tough, but remained confident that the credit insurance issues could be resolved.
He said: “Along with other retailers, it is true that some of our suppliers that deal with Euler Hermes have faced issues. We are working with our banks and suppliers to resolve the issues.”
The value home furnishings chain is the latest retailer to face problems with its supplier credit insurance. Earlier this year, furniture retailers Land of Leather and ScS had insurance removed.
Euler Hermes confirmed it had withdrawn supplier credit insurance for Rosebys, but would not disclose when it was pulled. A spokesperson said: “We’re not offering credit insurance to suppliers as we are not comfortable with the risk.”
Retail Knowledge Bank senior partner Robert Clark said: “It’s not good news for Rosebys. It is certainly signalling something. Presumably they are suffering in a sector where there have already been some casualties, but if it’s been going on for some time and they’ve continued to trade, they must be dealing with it.”
Barrett joined in June, when he said his main job would be “steadying the ship”. Rosebys, which is owned by Indian company GHCL, runs 290 stores across the high street and retail parks.
Clark added: “This is a sign of the times – [instances like this] are spreading. The supplier relationship is crucial. If they get nervous and you get empty shelves, customers melt away. Many suppliers are having to take payment delays. It’s endemic.”
The retailer is launching in India with a more premium offering in September.
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