The UK head of one of the world’s biggest electronics manufacturers is calling on the government to do more to help retailers cope with withdrawal of trade credit insurance, warning that a failure to act could force hundreds of independent shopkeepers out of business.

Steve Dowdle, managing director of Sony UK, said the withdrawal of trade cover – insuring suppliers against the risk of the retailer defaulting on money it owes for goods – in the current downturn was one of the “biggest challenges UK retail has ever faced”.