Clal Scales Back Insurance to Tiv Taam Suppliers

Clal Credit Insurance has advised certain suppliers it is no longer prepared to insure their future sales to Tiv Taam Industries and to Tiv Taam chains, Haaretz has learned.

The insurance firm told the suppliers seeking more information that it had taken a decision not to increase credit insurance on transactions with Tiv Taam.

Any deterioration in the business of a company with insured cash flow results in a higher premium the insurance company charges suppliers.

A stronger response would be the complete halting of the sale of relevant supplier policies.

Clal Credit Insurance's decision to scale back credit insurance to Tiv Taam suppliers could indicate that the company feels the chain's business has deteriorated.

The insurance firm said that at this stage it is adjusting Tiv Taam's credit insurance.

"Clal Credit Insurance sent letters to two suppliers in the course of adjustments it is making," Tiv Taam said. "Tiv Taam has not had business relations with either supplier for months."

The non-kosher supermarket chain found itself in the headlines after the consumer affairs TV show "Kolbotek" taped butchers at three of its branches doctoring rotting chicken with spices to hide its foul order and bad color, and then selling the product as shwarma or "spicy nuggets."

The chain did not try to deny the allegations, although it claimed there had been specific problems at the branches, and apologized profusely to shoppers.