Multi National With Two Stores In Beverley Could Face Uncertain Future

National retailer, Poundland, who have stores at Flemingate and Victoria Barracks Retail  Park, say their business is a good shape, despite  their parent company being embroiled in fraud scandal.

Poundland made the comments due to news that its parent company, South African firm, Steinhoff, has become subject of fraud scandal that has taken billions of its value.

Poundland, who opened their second store in Beverley at the out of town retail park, Flemingate, in September 2015 employ a total workforce of 18,000 people nationally.

Reports that Insurer Atradius has reduced the amount of  cover it will give suppliers of Poundland, have raised questions of stability of the discount retailer with concerns if could put jobs at risk.

A company spokesman for Poundland, said in a statement released:

“While we certainly can’t predict the consequences for Steinhoff of the events of the last week, Poundland is a profitable, cash generating business that’s currently trading more strongly than it has in years – positive like-for-like sales and real momentum.”

In a letter to their workforce, bosses of Poundland who have 700 outlets pointed out that the business is in good shape, saying;

‘We’re confident once insurers fully understand our position – trading strongly and independent of Steinhoff – they will be able to offer additional reassurance to our suppliers.’

‘Nothing that’s happening thousands of miles away in South Africa will change that.’

Poundland find them self in this situation due to Steinhoff, which is under criminal and tax probes, that came to light following a delay in the release of their accounts.

This saw the value of the business has fall so much that the collateral is now worth far less than the debt, leavng private investors bracing themselves for millions in loses.

As Poundland distance themselves from their parent company, they remain focused on what is a busy timeof year for retail.

They say they are ‘on a roll’ and hope they can count on the support of the consumer.