One of Poundland’s suppliers has said it will lose millions if the firm collapses.
While that supplier will stay afloat, it is feared that some small and medium-sized suppliers could go under.
This is in addition to potentially thousands of job losses among staff.
Politicians have been putting questions to representatives of Poundland owners Gordon Brothers this week seeking “clarity” on plans for the 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.
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.
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.
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.
Not only 12,000 Poundland staff would be affected, but also potentially tens of thousands more, he said.
If Poundland’s stores are sold to new buyers, some of the employees may get new jobs on the same 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.
