Protect Poundland from predatory capitalism, MPs tell government
Summary
Poundland’s future is uncertain after the retailer filed notice that it intends to appoint administrators, putting 12,000 jobs at risk. MPs and government ministers have urged its owner, Gordon Brothers, to consider offers to keep the chain operating, while the government says it cannot intervene in commercial negotiations.Key Facts
- Poundland filed a notice of intention to appoint administrators at the High Court last Thursday.
- Gordon Brothers, which controls Poundland, appointed AlixPartners to manage the restructuring process.
- Minister Kate Dearden said government officials spoke with Gordon Brothers on Monday and she would meet Poundland managers and the Usdaw union on Wednesday.
- Business Secretary Jonathan Reynolds is due to meet Gordon Brothers later this week.
- Gordon Brothers is understood to be discussing offers to buy the whole company from Martin Property Group and Innovest.
- Martin Property Group has reportedly made an offer of about £15 million, with half due immediately; Gordon Brothers is believed to consider it insufficient to repay a £30 million shareholder loan.
- Poundland’s ability to trade has been hurt by suppliers holding back deliveries, raising the risk of store closures and job losses.
- Gordon Brothers said in a letter to the government that it had provided Poundland with £85 million in additional financing since acquiring the retailer for £1 last year.
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