Poundland supplier 'will lose millions' if retailer collapses
Summary
Highcrest Retail Brands, a major Poundland supplier, says it could lose several million pounds if the retailer becomes insolvent. The possible collapse also threatens other suppliers and jobs, while government ministers are seeking answers from Poundland’s owner, Gordon Brothers.Key Facts
- Highcrest sales director Adam Turner said Poundland is one of the Bradford family business’s biggest customers and that the companies have worked together for decades.
- Highcrest mainly supplies confectionery and has annual turnover of about £50 million.
- Turner said Highcrest could withstand the loss, but some smaller suppliers have told him they might also fail if Poundland collapses.
- Poundland founder Steve Smith warned that 2,000 to 3,000 suppliers that work only for Poundland could be directly affected.
- Poundland employs about 12,000 people; the article says buyers are currently interested in about half its stores, potentially leaving roughly 6,000 employees without jobs at those sites.
- Turner said suppliers may recover only a small part of what they are owed in an administration, while secured creditor Gordon Brothers would be first in line for repayment.
- Business Secretary Jonathan Reynolds is due to meet Gordon Brothers, and business minister Kate Dearden told MPs that government officials had already met the company.
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