Cash strapped giant Woolworths have been dealt another blow as France based insurer Coface has withdrawn it’s credit insurance cover with the companies suppliers.
Coface became the third insurance company to withdraw its facilities from the stricken high street store, following similar withdrawals by Euler Hermes and Atradius.
Shares in Woolworths have been hit by the credit insurance refusal, falling by over 16% amid fears that suppliers to the chain are likely to insist on payment before shipping goods rather than trade on credit terms.
There is also a real fear that suppliers may reject them completely, forcing the company to restructure it’s supply chain in the crucial run up to Christmas.
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