Woolworths comfortable with finance and cash position

LONDON (Reuters) - Woolworths Group WLW.L said it was comfortable with its financial and cash positions and was continuing to trade normally with its suppliers despite their loss of credit insurance cover.

"The board of Woolworths is comfortable with the financial and cash position of the group," said a spokesman for the sweets-to-DVDs retailer.

He was speaking after it emerged that credit insurer Coface had withdrawn cover to Woolworths' suppliers, following similar moves by Atradius and Euler Hermes.

The latter company does, however, still provide cover for EUK, Woolworths' entertainment distribution business.

Credit insurers provide cover to suppliers, protecting them against losses if a company supplied with goods fails to pay its bills. The loss of cover could mean suppliers insisting on quicker or even upfront payment for goods.

"Woolworths continues to work closely with suppliers and credit insurers in what is clearly a difficult environment for both the retail and wholesale sectors," said the Woolworths spokesman.

"While it is true that some credit insurers have tightened terms of trade, we are trading as normal with our suppliers and will continue to do so."

He said "a substantial proportion" of Woolworths retail's suppliers have traditionally operated without credit insurance.

"We are confident that we will be able to ensure a successful Christmas for our suppliers and customers," he added.