Vijay Daswani, director of Hong Kong-based Charlies International, says the retailer’s owner has frozen roughly £50 million that could otherwise be used to settle its debts.
Charlies International supplies Poundland with clothing lines such as tracksuits.
Daswani said the discount chain’s plight was “not only a UK jobs story”. He also stated, “Suppliers operate with factories in China, Bangladesh and elsewhere,” and “The financial consequences of a UK retail crisis must not simply be passed down the supply chain to workers and businesses who acted in good faith.”
Poundland filed a notice of intention to appoint administrators on 29 October after its owner, Gordon Brothers, restricted access to an existing loan facility.
The filing followed the firm’s rejection of a solvent bid from Martin Property Group, backed by Poundland management, because the proposal did not fully repay a £30 million shareholder loan.
The notice imposes a ten-working-day moratorium that blocks creditors from legal action, with the possibility of extension.
The investor is weighing alternatives, including a potential break-up of the business, while Martin Property Group’s offer is seen as the only credible solvent proposal.
The U.S. investment firm will appear before the Commons business committee in a closed-door session, where officials will be asked about the future of the chain, which operates about 600 stores and employs more than 10,000 people.
Daswani recalled that when Gordon Brothers acquired Poundland in June 2025, “suppliers were given assurances that the business would be secured, and many of us were asked to extend payment terms to 120 days.” He said his company complied in good faith.
He added, “We were not formally warned that payments were at risk before incurring further production, freight and shipping costs.”
He warned that the firm’s response will influence the confidence that overseas suppliers and manufacturers place in its future commitments. Daswani also expressed concern over reports of a proposed acquisition that could preserve Poundland and thousands of UK jobs, and said they would welcome public scrutiny of the obstacles preventing a solvent sale that protects employees, suppliers and other creditors alike.
Charlies International has submitted its concerns to the Commons business committee ahead of the upcoming session.
