Home > Uncategorized > HMV A credit insurance expert writes…

HMV A credit insurance expert writes…

From my good friend Martyn locke…very good points

Hi Clive,
I have seen the press and your blogs on HMV with much interest as we have a major CD supplier as a client and they are also affected.
Unfortunately Robert Peston is somewhat uninformed (not unusual according to Fleet Street rumours) and I thought I would clarify a few inaccuracies- Insurers have reduced limits not cancelled and this only refers to future sales and does not effect the outstanding debts from the peak Christmas period which Insurers supported. This is quiet time so the short term impact is much reduced. It is evident that HMV had a very poor Q4, have given profits and breach of bank covenant warnings, closing stores and are facing increasing competition from the internet. It is difficult to see where HMV is going and certainly represents a high risk with no identifyable recovery plan.
The likening of the HMV scenario to Woolworths will, I am sure, infuriate the Credit Insurers who supported Woolies and were stuffed by the banks to the tune of £500m who pulled out after firm assurances otherwise. Once bitten and all that…………………………
best regards
Martyn Locke
Associate Director
UK Credit Insurance Specialists Ltd
Office 01628 482400
Mobile 07766 954373
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