Hillcrest Retail Brands, a Bradford-based confectionery supplier, said it would lose "a few million" pounds if Poundland collapses. Adam Turner, Hillcrest's sales director, told the BBC that Poundland is one of the firm's biggest customers and that they have worked together for decades. Hillcrest turns over about £50m annually.
Turner said smaller suppliers have told him that if Poundland fails, so will they. Poundland founder Steve Smith warned on Monday that two or three thousand suppliers work exclusively for Poundland and would be directly affected by its collapse.
Up to 12,000 Poundland staff could lose their jobs. Potential buyers are interested in only about half the stores, meaning roughly 6,000 employees would not be re-employed by new owners.
If Poundland enters administration, suppliers will receive "pennies in the pound" back, Turner said. Gordon Brothers, Poundland's owner, will be a secured creditor and first in line for repayment, while suppliers "who have done nothing wrong" will take the financial hit.
Politicians have questioned Gordon Brothers this week over why a solvent deal has not been reached. Business minister Kate Dearden told Parliament that government officials met with Gordon Brothers representatives on Monday and that the Secretary of State will meet with them later this week. Dearden said ministers seek "clarity" on the retailer's future but will not interfere with ongoing commercial negotiations.
Gordon Brothers' European operations head reportedly told the government the firm had provided Poundland with £85m in additional financing since its purchase in 2025.