Insurer shuns The Hut Group in fresh blow to founder Matt Moulding
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Credit insurer Allianz Trade shuns The Hut Group in another blow to founder Matt Molding
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Troubled THG has suffered another blow after an insurer cut cover for its suppliers.
Allianz Trade, a leading UK credit insurer, has reduced the amount of cover for the e-commerce group’s suppliers in recent weeks.
Suppliers use credit insurance to protect themselves if a company goes bankrupt between placing an order and paying for it.
Busy: Allianz Trade’s decision to cut coverage for THG’s suppliers is the latest headache for the company and its founder Matt Molding (pictured with his wife Jodie)
If coverage can’t be guaranteed, they will usually require pre-payment on orders, increasing the strain on a company’s cash reserves.
Allianz has notified THG’s suppliers of the decision in recent weeks, though it still has some coverage and hasn’t stopped it altogether.
Clothing brands Asos and Ted Baker saw coverage cuts at their suppliers alongside online white goods retailer AO World.
Allianz also scrapped coverage for suppliers of fast fashion company Boohoo last month.
The insurer’s decision is the latest headache for THG – formerly known as The Hut Group – and founder Matt Molding.