Poundland 'Challenged and Vulnerable' Amid Administration Fears
US owners Gordon Brothers in 'active discussions' as rescue bid emerges for retailer facing 11,000 job cuts.
Carla Rooney
Poundland filed a notice to appoint administrators last week.
Poundland has secured a 10-working-day reprieve from its creditors. Gordon Brothers states the retailer remains 'challenged and vulnerable' following talks with ministers.
Gordon Brothers maintains it engages in 'active discussions' with interested parties. A spokesperson confirmed, 'Work continues at pace, engaging in active discussions on offers with interested parties.'
Xyra Group made a rescue bid for Poundland, offering to immediately pay off half of its outstanding debts. Sources familiar with the offer claim Xyra proposes to pay £12.5m of an outstanding £30m loan on Poundland's books.
Focus on the people in your employment. Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions. They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it.
Gordon Brothers faces intense pressure to accept a bid to save the retailer. The company stands on the brink of collapse despite receiving solvent takeover offers.
Advisers remain in talks with parties interested in buying the brand and swathes of stores. This process began approximately two months ago.
Andy Burnham urged Gordon Brothers to engage, stating, 'Focus on the people in your employment. Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions. They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it.'
Gordon Brothers stated the business remains 'challenged and vulnerable to any potential downturn in future trading.' This assessment comes despite management efforts to deliver a turnaround.
In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.
A spokesperson added, 'In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.'
Suppliers face significant financial losses if Poundland collapses. Steve Smith claims not only would Poundland's 12,000 staff be affected, but potentially up to 30,000 overall, including two to three thousand suppliers who solely work for the firm.