Poundland directors set to quit as retailer faces collapse risk

Summarised from 2 outlets · Updated 27 Oct, 11:20 · Archive

Directors appointed to handle Poundland's emergency sale are about to resign over a dispute with the majority owner about the company's future.

Three directors appointed to Poundland on 15 October to oversee its emergency sale process are on the brink of resigning, risking the collapse of one of Britain's biggest discount retailers. Directors Andrew Kirkpatrick, Stephen Welch and Dominic Young have expressed concern about efforts to push Poundland towards insolvency proceedings by its majority owner, Gordon Brothers, according to Sky News.

The dispute centres on whether to accept an offer from Martin Property Group or break up the business. The Mirror reports that Gordon Brothers rejected Martin Property Group's bid, which would have included keeping a distribution centre in Andy Burnham's Makerfield constituency. Irish firm Innovest Holdings is also reportedly pursuing a solvent bid for Poundland.

Poundland employs over 10,000 staff across roughly 600 stores in the UK and Ireland. If the company collapses, it would be one of the biggest retail failures in years. The Mirror reports that other discount retailers including Poundstretcher, B&M, Iceland and The Range have expressed interest in acquiring some stores. According to the Mirror, there is still hope if a revised offer emerges within the next 48 hours.

How it is being reported

• Poundland 'at risk of going bust within days' as ready to walk out - 600 UK stores could be hitA disagreement between directors and the brand's majority owner on whether or not to break up the business is putting thousands of high street jobs at riskThe Mirror · 27 Oct, 10:58
• Poundland close to collapse as new directors head for exitThe directors recruited to steer Poundland through its emergency sale process less than two weeks ago are on the brink of resigning, heightening the risk that one of Britain's biggest discount retailers will collapse within days, risking thousands of job losses.Sky News Business · 27 Oct, 08:03

In this story: Poundland · Gordon Brothers · Martin Property Group · Innovest Holdings · Andy Burnham · Makerfield

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