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 and that the two businesses have worked together for decades. Highcrest, a family-owned business in Bradford, mainly sells confectionery to Poundland and has a turnover of about £50m.
Turner said Highcrest is a longstanding business that can absorb the loss. He said other small and medium-sized suppliers have told him that if Poundland fails, they will too. Poundland founder Steve Smith has warned that two or three thousand suppliers that work only for Poundland would be directly affected by a collapse.
Turner said the final three months of the year are the "golden quarter" for retailers, and that suppliers are owed the most by Poundland during that period. He said suppliers would likely recover "pennies in the pound" if Poundland enters administration. Owner Gordon Brothers is a secured creditor and would be first in line to recover its money.
Smith has said about 12,000 Poundland staff would be affected, and potentially tens of thousands more. The report says buyers are currently interested in only about half of the stores, meaning roughly 6,000 employees would not be re-employed.
Turner said he did not know whether Gordon Brothers had 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 report says the firm has given Poundland £85m in additional financing since its 2025 purchase, according to the head of its European operations, who said it stood by its stewardship.
Business Secretary Jonathan Reynolds is due to meet Gordon Brothers this week. Business minister Kate Dearden told MPs that officials had met the firm on Monday and that she would meet Poundland executives on Wednesday. She said Poundland is not in administration and continues to trade, and that the government would seek "clarity" on the retailer's plans without interfering in commercial negotiations.