Focus calls for Government investigation into credit insurance

Focus DIY, the UK home improvement retail chain, has called for a government investigation after the company’s credit insurers withdrew almost all cover for its suppliers.

Less than 5% of the stock Focus buys is now insured, down from about one-third in September. The company, owned by US private equity group Cerberus, said it had persuaded its 300 or so suppliers to stick to the standard 67-day payment terms, rather than demand up-front payment.

Bill Grimsey, chief executive of the 200-store chain, said he had met a dozen suppliers in the past fortnight to discuss the issue.