Poundland supplier 'will lose millions' if retailer collapses
Poundland suppliers are warning of significant financial losses and potential insolvency if the retailer collapses. While larger suppliers may survive, smaller businesses face a high risk of closure, threatening thousands of jobs beyond the retailer's own staff.
Why it matters
The potential collapse of a major retailer highlights the fragility of supply chain ecosystems and the broader economic impact on small and medium-sized enterprises.
Image caption, Adam Turner is sales director at Poundland supplier Hillcrest
One of Poundland's suppliers has said it will lose millions if the firm collapses.
While that supplier will stay afloat, it is feared that some small and medium-sized suppliers could go under.
This is in addition to potentially thousands of job losses among staff.
Politicians have been putting questions to representatives of Poundland owners Gordon Brothers this week seeking "clarity" on plans for the retailer.
Adam Turner, sales director at Highcrest Retail Brands - a family owned Bradford business - told the BBC that Poundland was one of Highcrest's biggest customers, and that the firms have had a relationship for decades.
Highcrest mainly sells confectionary to Poundland, and turns over about £50m.
It will "lose a few million" if Poundland becomes insolvent, so it will have a gap in its balance sheet next year, he said.
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