Citing trade journal The Grocer, the newspaper said the credit insurer has reduced the cover it provides for stock supplied to Poundland, with one supplier halting deliveries because of its policy not to ship to clients with no full credit insurance. It’s not clear whether other suppliers are following suit, and whether the impact would be significant.
For Poundland, it doesn’t foresee supply woes, especially not during the upcoming holidays.
“We are having a great Christmas and the behaviour of this credit insurer is irrational,” the report quoted a spokesperson as saying. “We are working to make sure suppliers have the full facts about the strong trading of the business.”
The issue of credit insurance stemmed from the accounting scandal being faced by Poundland parent company Steinhoff, which is under criminal and tax probes. The firm is slated to meet its bankers tomorrow.
Meanwhile The Times cited speculation about a possible similar action being taken by Euler Hermes, also a credit insurer of Poundland.
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