Boohoo campaign imagery. Credits: Boohoo.
In the latest round of insurance cuts for fast fashion retailers, it has now been reported that credit insurer Allianz Trade has slashed its coverage for Boohoo suppliers.
Cover is understood to have been cut by an average of 50 percent, while some Boohoo suppliers are set to see their coverage cut to zero from September, The Sunday Times reported.
A spokesperson for Boohoo told the media outlet: “With the credit insurance capacity less than 50 utilised, we wouldn’t expect any real impact from the reduction.”
The news comes just months after the fast fashion group had been reported to have requested discounts from suppliers on both delivered and undelivered clothing.
In May, media outlets had speculated that such requests were targeted towards the company’s Turkish suppliers, who were understood to have been asked for a 30 percent discount on outstanding orders.
The latest insurance cuts reflect a wider industry trend, however.
In March, Drapers reported that Atrdius had cut cover for Asos suppliers amid the retailer’s falling profits, while earlier in December 2022, beauty group THG had also experienced cuts from Allianz Trade.
For Boohoo, the slash in coverage comes as the company reported a 11 percent sales slip in the UK, alongside a 90.7 million pounds pre-tax loss in its full-year to February 28.
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