The Bookseller.com

20th November 2008

Suppliers tighten Bertrams terms

02.10.08 Catherine Neilan

Bertrams and its parent company EUK are in continuing discussions with a number of distributors and publishers over reduced credit terms, as suppliers search for ways to reduce their exposure following the cancellation of publishers’ credit cover linked to the group. It is thought that some suppliers have sought credit terms as short as 15 days.

A number of publishers spoken to by The Bookseller confirmed they had been seeking reduced payment terms with the UK’s second-largest wholesaler because of concern about parent Woolworths. One publisher told The Bookseller: "It is all about the parent company, Bertrams is caught in the middle." One small publisher said it had stopped supplying Bertrams in an effort to reduce its "exposure".

Hachette Distribution, which comprises Bookpoint and LBS, is understood to have temporarily stopped supplying Bertrams this week after reducing its credit period, and telling its trade publishers that if they continued to supply Bertrams it would be “very clearly at the publishers’ own risk”. A source close to the negotiations claimed that supply was expected to recommence later in the week, adding that it was about more than the credit insurance. But other major distributors are also understood to have tightened terms.

Hachette UK c.e.o. Tim Hely Hutchinson said: "Following the sudden removal of credit insurance cover from the Woolworths group wholesalers, we have proposed new credit arrangements that will allow us to continue trading together. The proposals we have made in these exceptional circumstances have been communicated to our client publishers and sales teams."

Hely Hutchinson explained the firm was "still discussing arrangements" and stressed that "both EUK and Bertrams are most valued customers", providing "excellent service" to retailers, particularly in the independent sector. He said: "We hope very much that we will be able to make arrangements that will support them and their customers on a basis acceptable to our client publishers and our shareholders."

EUK’s parent Woolworths declined to comment on specific relationships with individual suppliers, but a spokeswoman said the board was "comfortable with the financial and cash position of the group" and that the firm was working closely with other companies in "what is clearly a difficult environment for both the retail and wholesale sectors". She added: "While it is true that some credit insurers are tightening terms of trade, we are trading as normal with our suppliers and will continue to do so. Bertrams continues to work closely with all of its customers and suppliers to ensure a successful Christmas period for all parties."

Bertrams woolworths Home Catherine Neilan

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