Poundland owner extracted millions when chain was on ‘knife-edge’, MPs say
Summary
Poundland is seeking a 10-working-day extension of legal protection from creditors while its owner, Gordon Brothers, negotiates a rescue deal. MPs accused Gordon Brothers of taking millions from the retailer while it was financially vulnerable; the owner has released a further £10m to support trading.Key Facts
- Poundland employs about 12,000 people and operates 600 stores in the UK and Ireland.
- The retailer filed notice of its intention to appoint administrators two weeks before the article was published.
- Poundland’s directors are asking the High Court for 10 more working days of protection from creditors.
- Gordon Brothers released an additional £10m to help Poundland buy stock and continue trading.
- Committee chair Liam Byrne said he was concerned Gordon Brothers’ actions may have put thousands of jobs at risk.
- Sources said Poundland’s sales were up year on year, but its available cash would support the business only for a short time.
- Gordon Brothers is in talks with three potential bidders for the chain and has indicated that breaking it up could raise more money.
- A management-backed bid supported by Martin Property Group is among the offers under discussion; its first bid was rejected.
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