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Poundland set for more time to secure a rescue deal as emergency talks continue
BBC • • general
Key Points:
- Poundland is likely to avoid immediate collapse after its US owners, Gordon Brothers, expressed support for extending the deadline to find a rescue deal, allowing more time to secure a buyer.
- The discount chain, employing 11,000 people, faced administration after Gordon Brothers froze about £50m in funds, restricting Poundland’s ability to restock and pay expenses during a critical trading period.
- MPs criticized Gordon Brothers for prioritizing financial returns over jobs and stores, accusing the firm of pushing for a piecemeal sale of Poundland’s 600 stores and stock, despite three takeover bids being rejected.
- Gordon Brothers agreed to release an additional £9m, on top of £10m already freed, granting Poundland 10 more days to find a buyer amid concerns over the chain’s future and its role in supporting communities during the cost-of-living crisis.
- Poundland reported a strong sales recovery with an 11.4% increase in like-for-like sales and an £18.1m profit in the year to September, but Gordon Brothers described the business as still vulnerable and suggested breaking up the chain might best secure jobs.
