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Small Poundland suppliers warn 'if Poundland goes under, so do they' as fury grows at US owner Gordon Brothers

Tesco is in talks to buy up to 150 Poundland stores as Gordon Brothers, the US private equity firm that bought the chain for £1 last year, edges it toward break-up with 12,000 jobs at risk.
Tesco is in talks to buy up to 150 Poundland stores as Gordon Brothers, the US private equity firm that bought the chain for £1 last year, edges it toward break-up with 12,000 jobs at risk.

Downing Street has accused US owner Gordon Brothers of "not acting in the best interests" of Poundland's 12,000 staff, demanding it account for its decision to turn down solvent buyout offers. Adam Turner, sales director at Bradford confectionery firm Highcrest Retail Brands, told the BBC his company will lose millions — and that smaller suppliers face total collapse. MPs have summoned Gordon Brothers to a select committee grilling and called for a crackdown on "predatory capitalism".

Buyers are currently interested in only around half of Poundland's stores, leaving roughly 6,000 staff with no prospect of re-employment.

Gordon Brothers rejected Irish firm Martin Property Group's bid because it would not pay up front for a £30m inherited loan — a second solvent offer from Innovest is also not being considered.

Business Secretary Jonathan Reynolds is due to meet Gordon Brothers this week, as Labour and Reform UK MPs both pile pressure on the American firm.

MoreThe TelegraphThe corporate raider at the centre of Poundland’s woesBBC News - BusinessPoundland supplier 'angry' with owners over administrationThe GuardianProtect Poundland from predatory capitalism, MPs tell governmentFinancial TimesMPs summon Poundland’s owner to select committee grillingCity A.M.Poundland owner ‘not acting in best interests’ of workers, says No10Daily RecordPrivate equity firms 'destroying Scots high streets' as Poundland on brink of collapse
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