Poundland supplier 'will lose millions' if retailer collapses

Adam Turner, sales director at Bradford-based Highcrest Retail Brands, said Poundland was one of its biggest customers and its collapse would cost it "a few million" in lost sales. Poundland's owner, US-based investment firm Gordon Brothers, is facing government scrutiny after refusing a bid which would have kept the retailer in business. Gordon Brothers has previously said Poundland faces multiple economic challenges from rising inflation, increasing staff costs, and "severe levels of shoplifting".

Highcrest was a "longstanding business that can stomach this", Turner said. But he warned other medium and small suppliers to the retailer have told him that "if Poundland goes under, so do they". This echoes a warning from Poundland founder Steve Smith on Monday that two or three thousand suppliers to the firm, which only work for Poundland, would be directly affected by its collapse.

Gordon Brothers said Walsall-based Poundland is "still not cash generative at a sustainable level" because of the economic issues it faces.