- Published
One of Poundland's suppliers has said it will lose millions if the firm collapses.
asserted
firm → publish → millions
While that supplier will stay afloat, it is feared that some small and medium-sized suppliers could go under.
uncertain
suppliers → stay → ?
Politicians have been putting questions to representatives of Poundland owners Gordon Brothers this week seeking "clarity" on plans for the retailer.
asserted
Politicians → put → 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.
asserted
firms → own → 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.
asserted
he → sell → sheet
Highcrest was a "longstanding business that can stomach this", but other medium and small suppliers have told him that "if Poundland goes under, so do they", Mr Turner said.
asserted
Turner → longstande → him
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.
asserted
which → echo → collapse
Not only 12,000 Poundland staff would be affected, but also potentially tens of thousands more, he said.
asserted
he → affect → ?
If Poundland's stores are sold to new buyers, some of the employees may get new jobs on the same premises.
uncertain
some → sell → premises
However, it is understood that buyers are only interested in about half the stores at present - meaning roughly 6,000 employees would not be re-employed.
asserted
employees → understand → stores
High stock levels
Mr Turner said that the last three months of the year is the "golden quarter" for retailers.
asserted
months → say → retailers
In terms of sweets, Poundland will get its Halloween stock in from July, and Christmas stock in from September.
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Poundland → get → September
These three months will be the time of year when suppliers will be owed the most by Poundland.
asserted
suppliers → owe → Poundland
If Poundland goes under, suppliers will be getting "pennies in the pound" back from the administration, he said, which is "very upsetting" - although he still hopes a deal can be done so Poundland can remain solvent.
asserted
Poundland → go → administration
Poundland owners Gordon Brothers will be a secured creditor, which means they are first in line to get their money back, and suppliers "who have done nothing wrong" will take the financial hit.
"
asserted
who → mean → hit
It's a massive ripple effect through the supply chain," he added.
asserted
he → add → chain
Mr Turner said he had no knowledge of whether Gordon Brothers had deliberately timed the process of Poundland going into administration so it could take advantage of having high stock levels, which it can then sell.
uncertain
it → say → which
One of the ways Gordon Brothers makes money is through stock liquidations - selling off stock from collapsed businesses.
asserted
Brothers → make → businesses
One insider familiar with the situation told the BBC that the timing of Poundland facing collapse was "odd" - most retailers don't fall over in the run-up to Christmas.
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retailers → tell → Christmas
Gordon Brothers was approached for comment.
asserted
Brothers → approach → comment
Meanwhile, business secretary Jonathan Reynolds will meet with Gordon Brothers later this week after he and Prime Minister Andy Burnham questioned why a solvent deal had not been made.
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deal → meet → Brothers
Business minster Kate Dearden told MPs that government officials had also met with representatives from Gordon Brothers on Monday.
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officials → tell → Monday
"I am deeply concerned about the uncertainty surrounding Poundland's future and the impact it could have on its staff and their families who are at the forefront of my mind," Dearden told the House of Commons.
uncertain
Dearden → concern → Commons
"Poundland is not currently in administration and the business continues to trade, but this is a worrying time for employees, suppliers and communities", she added.
asserted
she → continue → employees
The minister confirmed she would also be meeting with Poundland executives on Wednesday.
asserted
she → confirm → Wednesday
She said the government doesn't want to interfere with "current ongoing commercial negotiations", but said ministers would be seeking "clarity" on the plans for the retailer.
"
asserted
ministers → say → retailer
It's absolutely legitimate for this government to ask the business if they're doing everything they can to protect employees and suppliers up and down the country," she added.
asserted
she → ask → country
Dearden told MPs that the government would be ready to help the company's employees, should the current situation end in administration.
asserted
situation → tell → administration
"We stand ready to support them if they need to move into new employment, however...
asserted
they → stand → employment
our priority is always in protecting jobs and the Secretary of State and I will continue to engage with the company to secure the best possible outcome," she added.
asserted
she → protect → outcome
The head of Gordon Brothers' European operations reportedly told the government that the firm stood by its stewardship and had given Poundland £85m in additional financing since its purchase in 2025.
uncertain
firm → tell → 2025
The Aporia
