Euler Hermes has pulled cover on suppliers of bed retailer Dreams.
The trade credit insurer suspended cover of about a fifth of Dreams' suppliers last week, City AM reported.
Euler Hermes put Dreams’ suppliers on notice that its cover would end in 30 days, leaving them at risk of loss if the bed specialist failed to pay them.
The move comes despite accounts from Dreams showing it received £20m of fresh capital and secured “improved terms for its banking facilities” from its private equity owner Exponent in May.
The Companies House accounts also showed Dreams remained profitable in the year to 24 December 2010, post a profit of almost £5m, although this fell from £15.3m in 2009
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