Hillcrest, a family-owned Bradford business that sells confectionery to Poundland, says it would "lose a few million" if the discount retailer becomes insolvent. Its sales director, Adam Turner, told the BBC that Hillcrest has supplied Poundland for decades and turns over about £50m. He said Hillcrest is a "longstanding business that can stomach this," but that smaller suppliers have told him "if Poundland goes under, so do they."
Poundland founder Steve Smith said earlier this week that two or three thousand suppliers that work only for Poundland would be directly affected by a collapse. Smith also said 12,000 Poundland staff would be affected, and potentially tens of thousands more.
Turner said the final three months of the year are the "golden quarter" for retailers, and that suppliers are owed the most by Poundland during that period. He said suppliers would likely recover "pennies in the pound" in an administration. Poundland owner Gordon Brothers would be a secured creditor and would be paid first, Turner said.
Turner said he did not know whether Gordon Brothers had timed the process to benefit from high stock levels. An insider familiar with the situation told the BBC the timing was "odd." Gordon Brothers was approached for comment. Its European head reportedly told the government the firm had given Poundland £85m in additional financing since its 2025 purchase.
Business Secretary Jonathan Reynolds and Business Minister Kate Dearden have sought "clarity" on the retailer's plans. Dearden told MPs that Poundland is not currently in administration and continues to trade. She said she would meet Poundland executives on Wednesday and that the government stands ready to support employees if the situation ends in administration.