Poundland hits back over reports of trade credit problems amid scandal at its South African owner 

Poundland said today it was in good shape, despite reports its trade credit cover to suppliers is being reduced.

The discount retailer told Insurance Times there has been no “impact on supply”, with deliveries being made today, tomorrow, into the “New Year and beyond.”

Poundland has been under pressure after retailer trade publication The Grocer reported Atradius was reducing cover, and subsequent reports that Euler Hermes, which Allianz has launched a takeover bid for, may follow suit.

One source reportedly told The Grocer their business would not be delivering any more stock to Poundland as this was against his business’s policy requiring retailer’s dealt with to have full credit insurance cover.

The high street chain is owned by scandal-hit South African firm Steinhoff, whose shares have fallen 80% in two weeks when it delayed results, revealed an accounts probe and warned it may restate previous financial statements. 

Chief executive Markus Jooste exited amid the furore. 

Euler Hermes and Atradius both declined to comment.