Poundland supplier Highcrest Retail Brands says it will lose a few million pounds if the discount retailer becomes insolvent. Adam Turner, the firm's sales director, told the BBC that Poundland is one of Highcrest's biggest customers. Highcrest, a family-owned Bradford business, mainly sells confectionery to Poundland and turns over about £50m.
Turner said Highcrest is a longstanding business that can absorb the loss. Other smaller and medium-sized suppliers have told him that "if Poundland goes under, so do they."
Turner said suppliers would likely recover only "pennies in the pound" from an administration. Gordon Brothers, Poundland's owner, is a secured creditor and would be first in line for repayment. He said the last three months of the year are the peak period for supplier payments because of Halloween and Christmas stock.
Poundland founder Steve Smith said on Monday that two or three thousand suppliers that work only for Poundland would be directly affected by a collapse. The BBC reports that buyers are interested in only about half of Poundland's stores at present, meaning roughly 6,000 employees would not be re-employed.
Turner said he had no knowledge of whether Gordon Brothers timed the process to benefit from high stock levels. An insider familiar with the situation told the BBC the timing was "odd." Gordon Brothers was approached for comment. The firm's head of European operations reportedly told the government that it stood by its stewardship and had provided £85m in additional financing since buying Poundland in 2025.
Business Secretary Jonathan Reynolds is due to meet Gordon Brothers this week. Business minister Kate Dearden told MPs that officials had also met Gordon Brothers representatives on Monday and would meet Poundland executives on Wednesday. Dearden said Poundland is not in administration and continues to trade.