Poundland files to appoint administrators, putting up to 12,000 jobs at risk
Poundland has filed a notice of intention to appoint administrators in a move that puts up to 12,000 jobs at risk.
Its owner Gordon Brothers has also lined up advisory firm Alix Partners to run the process.
Subscribe to TRBThe news follows days of speculation about the retailer’s future as it seeks to secure a potential rescue deal. The legal process now means Poundland is protected from creditor demands for a period of ten working days.
Northern Ireland based Martin Property Group had been interested in buying the chain and working with its managing director, Barry Williams.
However, The Guardian has reported that Gordon Brothers believes it can raise more through a break-up of the business than by accepting Martin’s offer. This is believed to be less than the £30 million debt Gordon Brothers took on when it acquired Poundland from Pepco Group from a nominal £1 sum in June last year. Gordon Brothers has also previously rejected a plan for a management backed buyout.
Gordon Brothers launched a sale process for Poundland in September. The retailer operates 600 stores, including the Dealz chain in Ireland. B&M, Poundstretcher and The Range are understood to have been interested in acquiring some of the stores.
The Usdaw union has urged Gordon Brothers to reconsider any decision to prepare Poundland for administration.
Usdaw national officer Bally Auluk said: “It has been an incredibly distressing week for Poundland staff who have had to watch from the sidelines as a multi-billion pound company jeopardises their livelihoods as it tries to extract £30m from a business it bought for £1.
“Poundland’s managing director Barry Williams reluctantly filed a notice of intention, to give the business time to find a rescue deal and prevent Gordon Brothers from breaking up the business.
“We are urging Gordon Brothers to reconsider and to prioritise a unified buyer who will protect the livelihoods of 11,000 people.”
