The Bookseller.com

8th September 2008

EUK reassures trade in Woolies worry

08.08.08 Graeme Neill

Wholesaler Entertainment UK has moved to reassure small and independent publishers that it "continues to be a financially stable business" after some publishers had credit insurance cancelled.

A number of independent publishers told The Bookseller that insurance for stock held with the wholesaler had been reduced or cancelled recently. It is unclear how many publishers are involved but it is not believed to have affected major publishers' credit insurance.

One insurer's document said the decision was made "in the light of the prevailing uncertain economy and extremely challenging retail conditions in the UK. Our stance has been further reviewed following [parent company Woolworths] Group's recent announcement to the London Stock Exchange," it said. Last week, Woolworths gave a fresh profit warning after sales fell 6.7% in the six weeks to 26th July.

An EUK spokesman said it was common practice for credit insurers to review risk and exposure. "The Woolworths Group has no major issues with any credit insurer and we have no reason to believe we will have any issues during the Q4 peak trading period. EUK is and continues to be a financially stable business with a proven and profitable track record."

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