AO has moved to reassure its customers after its value slumped to a two-year low. Shares in the Bolton-headquartered online electricals retailer fell by more than 18% at one stage in morning trading on Monday following the Sunday Times report revealing it has been hit by a cut in credit cover by Atradius.
Credit insurance protects suppliers against the risk of retailers collapsing before payment for goods is made and without this cover in place, suppliers often demand upfront payments, increasing cash flow woes.
Its share price recovered to just under 12% down when the group issued a statement reacting to the report to the London Stock Exchange.
