Poundland has dismissed reports it is struggling to fill shelves as suppliers tighten credit terms as “bunkum”.
The Times reported yesterday that major suppliers including Procter & Gamble and Nestlé had tightened credit lines and payment windows amid uncertainty over the retailer’s future, following its sale to investment firm Gordon Brothers in June.
A Poundland spokesman told The Grocer P&G had never placed any restrictions on the discount chain’s supply and Nestlé had actually increased its limits on Wednesday this week, when the retailer held a supplier meeting.
He said Poundland received “very strong support” for its recovery plans as it briefed hundreds of suppliers at the meeting at its Walsall head office.
“It’s very firmly business as usual despite the restructure plans,” he said.
“There has been no tightening of any limits since the acquisition by Gordon Brothers. That is false.”
Nestlé declined to comment. P&G was approached for comment.
Poundland intends to close 68 stores in a restructuring plan that was announced following its sale to Gordon Brothers for a nominal sum last month. The plan is subject to court approval, with a ruling expected by the end of August.
Poundland has anticipated the estate could shrink further, from about 800 to between 650 and 700 over time.
A trading update from former owner Pepco Group yesterday said that between 1 April and the completion of the sale on 12 June, Poundland revenue fell 10.3% to €347m. Poundland’s like-for-like sales were down 7.1% in the same period.
At the same time the Poundland estate shrank by 19 stores, from 818 to 799.
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