World News – UK – Top store collapse May leave £ 250m in unpaid bills – Daily Business

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The Arcadia collapse is expected to cost suppliers £ 250 million in unpaid invoices.

The failure of Sir Philip Green’s top shop for the Burtons Empire could bring a number of smaller companies in the supply chain to a standstill.

Flemming Bengtsen, CEO of Nimbla Invoice Insurance, commented: “The much needed cash inflow through CBILS and BBILS into UK companies has prevented many SMEs from going bankrupt.

“However, it has also created a wave of“ zombie ”companies that have little realistic chance of survival. The collapse of Arcadia underscores the risk of a domino effect as trade credit failures cause others to fail. We estimate that up to 250 million. GBP in unsecured debt will be left to Arcadia’s suppliers.

“SMEs are in a precarious position; heavily indebted and unable to withstand any further stress on their business.

“They require their suppliers to offer loan terms as they cannot borrow anymore and likewise cannot afford their debts not to be paid.

“The average number of bad debts that SMEs said they would bankrupt was 30. 000 GBP before COVID19. That number is now undoubtedly much lower. Arcadia is unfortunately only the tip of the iceberg as many more failures are expected in 2021. The program is scheduled for March 31. December 2020. ”

Nimbla urges the government to extend the trade credit reinsurance reinsurance system until the effects of the crisis and incentives have found their way through the system.

Flemming Bengtsen added: We want these companies to really recover if they can. What we have to prevent is that they pull others with them. ”

The company employs around 13 people. 000 employees and stands behind well-known brands such as Topshop, Burtons and Dorothy Perkins.

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Trade Credit Insurance, Topshop, Arcadia Group, Invoice

World News – UK – The collapse of the top shop can leave £ 250m in unpaid bills – Daily Business
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Ref: https://dailybusinessgroup.co.uk

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