HMV to survive trade credit cuts

Entertainment retailer HMV is unlikely to enter administration owing to trade credit insurance being scaled back, analysts report.

Following reports this week that insurers including Euler Hermes had pulled trade credit on HMV suppliers, Peel Hunt analyst John Stevenson said most of HMV’s suppliers were large enough to self-insure and keep trading regardless.

A Euler Hermes spokesman said: “Euler Hermes remains on cover for HMV, and the review of levels of cover was primarily down to a seasonal adjustment after the post-Christmas rush.”