Retailer JJB Sports' hopes of survival were dealt a further blow after credit insurers withdrew cover for the company's suppliers, sending shares into a renewed nosedive.

Insurer Coface confirmed that it was withdrawing credit insurance from JJB suppliers amid growing concerns over the future of the UK sports goods retailer.

Last month, JJB announced shock first-half losses of GBP9.7m (US$17m), with the company's auditors casting "significant doubt" on the company's ability to continue as a going concern.

The loss of credit insurance for JJB suppliers means that they would not be protected if the retailer should go out of business.

As a result, they are likely to try to negotiate better terms with the company, and may demand payment prior to delivery.

Speaking to just-style, a Coface spokesperson said of the decision to withdraw cover: "It's an underwriting decision taken by the company based on our assessment of the financial information available to us on JJB.

"Our role is to continually monitor our exposure and our view and assessment of the financial standings of businesses, and to make calls based on that."

A JJB spokesman also told just-style there had been "no effect at all" on the company's trading as a result of the action, but declined to comment further.

Shares in the company fell 12% in morning trading today (7 October) to a new all-time low.