2018 was a brutal year for many high street retailers, with the loss of some big players.
The Christmas period was a mixed bag with some shops exceeding expectations but many falling below the mark as predicted.
With retailers disappearing from our high streets seemingly by the month, would you be able to spot the warning signs? One of the latest casualties, Yorkshire-based menswear retailer Greenwoods, has recently collapsed less than 18 months after it was rescued from administration. It is not yet known if a new owner will be found.
Looking at the company’s credit history (via a CoCredo report, see below) we can see that the warning signs were there back in 2017. The report shows a decline in recommended credit limit from £80,000 in August dropping to zero in September. The risk index also reduced from 40 to zero in the same time frame. This information would have highlighted to any potential customer that dealing with this company would have been a high risk.
Greenwood Menswear Ltd
Without knowing information like this and agreeing deals based on reputation alone is a risky business in today’s current climate. Running a company credit report on businesses you are about to work with is a quick and cost-effective way to protect you and your finances. If you are not running credit reports you are exposing yourself to potential bad debt which many companies can ill afford.
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