Poundland supplier warns of multimillion-pound losses if retailer collapses

Highcrest Retail Brands says it could lose several million pounds in sales if Poundland collapses. Sales director Adam Turner said the discount chain is among the Bradford family business’s largest customers. Highcrest, which mainly supplies confectionery and has turnover of about £50m, could absorb the loss, he said, but some smaller suppliers had warned him they could not survive.

Poundland owner Gordon Brothers says inflation, higher staffing costs and shoplifting have prevented sustainable cash generation. Ministers are seeking explanations about efforts to secure a deal. According to the supplied report, the government said Poundland was still trading and had not entered administration, despite mounting uncertainty for employees and suppliers.

The potential consequences extend beyond Poundland’s own workforce of 12,000. Founder Steve Smith estimates that a collapse could put up to 30,000 jobs at risk across the business and its suppliers. That wider figure is his assessment, rather than a confirmed total, while Turner’s account illustrates suppliers’ dependence on the chain.