Trouble in store for House of Fraser as credit insurer pulls cover
A credit insurer has pulled cover on House of Fraser, underscoring the difficulties faced by the department store following a disappointing set of Christmas figures.
A spokesperson for House of Fraser said 20 of the business' 650 suppliers were affected by the credit insurer's decision. Those suppliers will now have to find new insurance, or may demand upfront payments for their goods from House of Fraser.
House of Fraser reported dismal Christmas sales in January after it decided to cut the number of promotions it offered in stores; online sales slumped 7.5 per cent over the festive period.
Alex Williamson, the company's chief executive, defended the decision to cut deals, saying that the business would not "sell everything to everyone at any price".
"What's important, and we are seeing some success in the numbers, is to keep our discipline in selling those products that are loved by customers and profitable for House of Fraser," he said.