Poundland supplier ‘will lose millions’ if retailer collapses

Poundland supplier Highcrest Retail Brands says it could lose several million pounds if the retailer collapses, highlighting the financial risk to businesses in its supply chain. The warning comes as Poundland’s owners face questions from politicians about the retailer’s future, with staff and suppliers uncertain about what will happen.

Highcrest, a family-owned Bradford confectionery supplier with annual turnover of about £50m, says it can absorb the loss, but some smaller suppliers may not survive. Poundland founder Steve Smith has warned that 2,000 to 3,000 suppliers work only for the retailer; the company has about 12,000 staff, and current buyers are reportedly interested in roughly half its stores. Poundland is still trading and is not in administration, while ministers are due to meet its owners, Gordon Brothers.