Woolworths comfortable on position with suppliers

LONDON, Sept 14 (Reuters) - British sweets-to-DVDs retailer Woolworths WLW.L said on Sunday it was comfortable with its position with suppliers and credit insurers.

A Woolworths spokeswoman also denied a report in the Independent on Sunday newspaper which, citing an unidentified source, said two of Britain's biggest credit insurers, Euler Hermes and Atradius, had stopped providing new cover for firms supplying Woolworths and had cancelled some policies.

"The group continues to work closely with suppliers and credit insurers in what is clearly a difficult environment for the retail sector as a whole," she said.

"The group is comfortable with its position. We will give a fuller update in our interim results announcement on Wednesday."

Atradius said it never commented on individual companies but that it continued to support and work with the retail sector. Euler Hermes was not immediately available for comment.

Last month, Woolworths rejected an offer of about 50 million pounds ($88 million) for its 815-store retail business from a consortium including Icelandic investor Baugur and Malcolm Walker, the chief executive of the Iceland supermarket chain, though it said it was willing to hold talks.

Woolworths has been hit hard by competition from supermarkets and online retailers. (Reporting by Mark Potter; Editing by Richard Hubbard)