Woolworths is facing more instability in the run up to Christmas after another credit insurer has withdrawn cover from the beleaguered business.

French-owned Coface’s decision to pull its exposure means that none of the big credit insurers cover suppliers to Woolworths’ high street retail business.

Coface was the last of the big three credit insurers to withdraw cover from Woolworths, after Euler Hermes and Atradius.

Coface made the decision at the end of September — around the time that Atradius pulled its cover for EUK, Woolworths' entertainment distribution network. Only Euler Hermes remains involved with EUK.

Woolworths said: “While it is true that some credit insurers have tightened terms of trade, we are trading as normal with our suppliers and will continue to do so.

“A substantial proportion of Woolworths Retail suppliers have traditionally operated without credit insurance and we are confident that we will be able to ensure a successful Christmas for all our suppliers and customers.”