Don’t let Poundland owner maximise its return at our expense, suppliers say
Summary
Poundland’s US owner, Gordon Brothers, is weighing offers for the retailer while also considering a breakup that could recover more of a £30 million shareholder loan. Suppliers say that route could leave them with unpaid bills and unsold stock, as ministers meet the owner, Poundland’s managers and a union amid efforts to find a rescue deal.Key Facts
- Poundland filed a notice of intention to appoint administrators at the High Court last Thursday.
- The chain has about 600 stores, 12,000 staff and roughly 2,000 suppliers.
- Gordon Brothers bought Poundland for £1 last summer and is in talks with at least two potential buyers.
- One potential buyer is Northern Ireland’s Martin Property Group, whose offer has support from Poundland’s management team.
- Gordon Brothers is understood to favor a possible breakup, including selling stock and offering stores to retailers such as Tesco and the owner of Poundstretcher.
- Universal Toiletries director Karan Shah said his company faces about £1.5 million in potential losses, including nearly £700,000 in delivered stock that has not been paid for.
- John Leisure chief operating officer Andrew Kay said more than a million products made for Poundland may need to be redirected to other buyers.
- Business Secretary Jonathan Reynolds is due to meet Gordon Brothers executives, while Minister Kate Dearden is due to meet Poundland managers and the shop workers’ union Usdaw.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
