More disappointing news from the high street over the last couple of days, what with US based MEXX announcing the closure of its 61 retail outlets in the UK, and ladies fashion retailer Select Retail going into administration last friday.(even though half of its 250 stores have been sold to the management team over the weekend) Both companies blame the tricky trading conditions this year for the decisions taken. Apart from the tough competition in the high street itself, internet sales of clothing items jumped dramatically in January by 32% year on year, so the traditional stores are being hit from all angles it seems. From a credit risk point of view, suppliers to the high street outlets should  be monitoring the situation very closely, looking for signs of distress like a slowing down of trade invoice payments, as undoubtedly, more companies on the high street will feel the heat.I think I'd be asking to see monthly management accounts from some of my more risky customers if I was a supplier on open credit terms.If you don't ask, you don't get! 

February 27, 2008 | Permalink | Comments (0) | TrackBacks (0)

Politicians across Europe are ever eager to criticise the culture of late trade payment by corporations and the devastating impact it can have on small business in particular. It's a bit ironic then that EU ombudsman Nikiforos Diamandouros felt obliged to launch an investigation into late payments by the European Commission itself, following a number of complaints from frustrated contractors.His investigation, set up in late December 2007, called on the EU executive to send its opinion on what's going wrong by March latest. No news yet on the outcome, but I'm sure we'll hear that the EC has examined its internal procedures and has taken steps to ensure that delays are kept to a minimum.......................sound familiar?

February 25, 2008 | Permalink | Comments (0) | TrackBacks (0)

Last Friday, the Competition Commission published its long awaited provisional decisions on how to remedy its competition findings in the grocery sector. For suppliers to the large supermarket chains, that have felt frustrated in the past with the way their bills are paid, and disputes resolved,the document offers some real hope.To me, the most important proposal is that an ombudsman would be appointed to look into disputes and proactively investigate confidential complaints from suppliers about dubious trade practices.The CC says that this is their preferred route, otherwise they suggest an independent arbitrator, who I'm guessing would have lesser powers.Now we will await reaction over the next few weeks before the CC finalises everything in April/May.we'll soon find out just how powerful the supermarket lobby is- will the ombudsman stay in the final report, or will things be watered down?

February 19, 2008 | Permalink | Comments (0) | TrackBacks (0)