Business secretary writes to Poundland owner as administration fears build
Summary
Business Secretary Jonathan Reynolds contacted Poundland’s owner, Gordon Brothers, for information as the retailer faces possible administration. Gordon Brothers rejected a bid from Martin Property Group, while sources say it may instead break up the chain and sell stores and stock. Poundland employs about 12,000 people, and suppliers have reportedly begun holding back deliveries.Key Facts
- Gordon Brothers bought Poundland, which has about 600 stores, for £1 last summer.
- Poundland also includes the 50-store Dealz chain in Ireland.
- Martin Property Group made the only bid to acquire the group as a solvent business, but Gordon Brothers rejected it.
- The bid was reportedly worth more than £15 million, with only part of the sum payable upfront; Gordon Brothers had taken on £30 million in debt with Poundland.
- Sources said Gordon Brothers could appoint AlixPartners as administrator, potentially as early as Wednesday.
- Three independent directors appointed to oversee a sale have resigned amid concerns about the move toward insolvency.
- Poundland chief executive Barry Williams told staff that rejecting the Martin Property Group bid was “unexpected, unwanted and wholly avoidable.”
- The government said the process was commercial and that the decision rests with Poundland’s owners.
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