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