Poundland supplier warns collapse would cost it millions

A major Poundland supplier says the retailer’s collapse would cost it several million pounds, while warning that smaller businesses which rely on the chain could also fail.

Adam Turner, sales director at Bradford-based Highcrest Retail Brands, told the BBC that Poundland is one of his company’s biggest customers and that the two businesses have worked together for decades. Highcrest, which mainly supplies confectionery, has an annual turnover of about £50m. Turner said losing Poundland would leave a gap in its balance sheet next year, but that the family-owned firm could withstand the loss.

He said other small and medium-sized suppliers had told him they might not survive if Poundland went under. The chain is not currently in administration and continues to trade, but its future remains uncertain as its owners, Gordon Brothers, consider options for the business.

The warning comes as suppliers are carrying seasonal stock for the busy final quarter of the year. Turner said Poundland typically receives Halloween stock from July and Christmas stock from September, meaning suppliers are owed more during this period. If the retailer enters administration, he said, suppliers could recover only pennies for each pound owed.

Poundland founder Steve Smith has also warned that thousands of suppliers that work exclusively for the chain could be directly affected by its collapse. The consequences would come on top of the potential impact on the retailer’s 12,000 employees. The BBC reports that buyers are currently interested in about half of Poundland’s stores; if the rest are not taken over, roughly 6,000 employees may not be rehired.

Business Secretary Jonathan Reynolds is due to meet Gordon Brothers later this week. Ministers have asked why a deal to keep Poundland solvent has not been reached. Business Minister Kate Dearden told MPs the government was concerned about the uncertainty for staff, suppliers and communities, while saying it did not want to interfere in ongoing commercial negotiations.

Turner said he had no knowledge of whether Gordon Brothers had deliberately timed the process to coincide with high stock levels. The company was approached for comment by the BBC. Its European operations chief reportedly told the government that Gordon Brothers stood by its stewardship and had provided Poundland with £85m in additional financing since buying it in 2025.

Poundland’s search for a rescue deal and the possibility of a store break-up have already put thousands of jobs at risk.