Poundland faces potential difficulties with suppliers after an insurance company reduced its cover on credit for those selling goods to the cut price chain. Poundland said it did not expect any problems with stocks in the run-up to Christmas and that it was “profitable, cash generating and trading very strongly”. With a week of the Christmas trading season to go, Poundland’s stocks will all be in place. One supplier told The Grocer that he would not be able to deliver more stock to Poundland because his business had a policy not to ship to a retailer which did not have full credit insurance cover. The credit insurance issue arose after Steinhoff revealed last week that it was under criminal and tax investigations relating to a $7bn (£5.3bn) hole in its accounts.

Source: The Guardian December 15, 2017 18:56 UTC