Poundland has denied claims of low supply in stores, as its major suppliers, including Nestlé and Procter & Gamble, have increased their restrictions on credit terms.

In recent days, reports have emerged of fewer products on shelves, as suppliers have implemented tighter restrictions on credit payments and shorter payment deadlines due to economic volatility at Poundland, as reported by The Times.

Poundland’s suppliers were allegedly hesitant due to the current restructuring after its acquisition by The Gordon Brothers and the uncertainty of the retailer’s operations.

However, a spokesperson from Poundland revealed that Procter & Gamble did not tighten its credit restrictions for the discounter, and Nestlé improved its overall limits during the supplier meeting, according to The Grocer.

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The company is reportedly gaining “very strong support” from its suppliers amid its restructuring plan following its ongoing financial struggles.

The spokesperson said to The Grocer: “It’s very firmly business as usual despite the restructuring plans. There has been no tightening of any limits since the acquisition by Gordon Brothers. That is false.”

Poundland is currently undergoing a restructuring plan that involves potentially shuttering 68 stores and axing the frozen foods section to streamline costs for the retailer.

The discounter continued to struggle in its most recent financial results from 1 April to 12 June, seeing its revenue plunge by 10.3% to £299m.

Moving forward, Gordon Brothers is in the process of actively seeking court approval for its plans to restructure, with the process set to be completed by the end of August.

However, Nestlé and P&G have not disclosed any official statements.