The recent Pre-Pack acquisition of House of Fraser (with debts of £484 million owed to suppliers) by Sports Direct has again raised the plight of the supplier.
£14.9bn is the estimated amount of money being chased by UK small businesses (SME) as a result of late payment, an increase of £1bn on the previous 6 months.
Euler Hermes identifies the global regions where major insolvencies in sectors such as Retail, Construction and Agrifood are topping the charts.
The report from the Association of British Insurers (ABI) released earlier this month focuses on 2018 Q1 figures.
The overall economic position for the first quarter 2018 highlights the significant impact of debt owed to UK companies.
This weekend will mark the 90 day anniversary of the collapse of Carillion, but despite some insolvencies the predicted catastrophic wave of insolvencies hasn’t materialised yet.
At the moment it seems like every time you turn on the TV or listen to the news there is another well known company announcing it is going in to a CVA.
The Times article ‘Increased strain on supply chain highlighted by insurance payouts’ (16th March 2018) focuses on payments made by Credit Insurers in 2017, equating to £4.3 million per week.
In recent weeks, several high street restaurants have either undergone or are in the process of restructuring to manage their growing debts to creditors.
Businesses advised to consider credit insurance as part of their bad debt strategy due to an increasingly uncertain trading environment.