Insurer Refuses To Cover Topps Tiles Suppliers

London, England, Feb. 17, 2009--An insurer refused to cover suppliers of Topps Tiles against the risk of it going bust.

Topps Tiles said an unnamed credit insurer was withdrawing cover for its suppliers in the "uncertain" economic conditions.

Topps said key suppliers were supportive of the business and does not expect a "material" impact.

The withdrawal of trade credit insurance has hit many firms as suppliers can demand upfront payment, hitting cashflow.

Topps said similar moves by other insurers would not have a significant impact as most of its suppliers did not rely on credit insurance.

The firm said it continued to generate cash while lenders were also supportive.

"The board remains confident in the company's resilient business model and continues to manage the business with a prudent focus on cash and costs," it said.

The firm, which opened its first specialist tile centre in Manchester in 1963, has  317 UK stores but has scaled back its expansion plans for the coming year.