DSG International, the retail group that includes Dixons,
high-street consumer electronics chain Currys Digital, and small
business IT equipment suppliers PC World Business, MacWarehouse and
Equanet, is facing financial pressure as its
credit insurance has been drastically reduced.
ComputerWeekly.com's sister publication,
Microscope, revealed exclusively prior to Christmas that credit
insurer Euler Hermes had reviewed DSGi’s limits and reduced the
lines to the actual level of trade with suppliers. Now Euler,
the largest credit insurer in the UK IT channel, has taken further
steps to reduce its exposure to the business.
DSGi is viewed as risky according to sources in the channel and
major suppliers have seen a 50% to 60% reduction in insured limits
while others have reported a complete withdrawal of credit
insurance.
The news could affect smaller business that buy IT equipment
from PC World's Business division.
A spokesman at DSGi re-iterated the statement made weeks ago
when Euler first took corrective action, stating that credit
insurers were reducing their limits across many industries
including retail and the issue was not specific to his company.
For the full story, see
Microscope: Euler makes second reduction in DSGi credit
insurance