Poundland owners pursue sale as rescue talks continue

Summarised from 4 outlets · 6 reports · Updated 5 Nov, 11:05 · Archive

Poundland's US owner Gordon Brothers is in active discussions to sell the discount retailer after filing a notice to appoint administrators.

Poundland's US owner Gordon Brothers filed a notice to appoint administrators last week, putting the future of the high street discount chain and its roughly 11,000 workers at risk. On Thursday morning, Gordon Brothers said it remains in 'active discussions' with interested suitors seeking to 'protect as many jobs as possible' and preserve value.

Gordon Brothers acquired Poundland for £1 last year and launched a sale process at the start of September. The notice of intention to appoint administrators gives the business 10 working days of breathing space from creditors to secure a potential rescue deal before potentially entering formal insolvency. Advisers continue talks with parties interested in buying the brand and swathes of stores, some two months after the sale process began.

In a statement, Gordon Brothers said: 'We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value. Work continues at pace, engaging in active discussions on offers with interested parties.'

The company acknowledged that when it acquired the business, Poundland 'was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company's ability to trade'. Despite these efforts, Gordon Brothers stated that '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'.

The owner is under pressure to accept a bid to save the retailer, which faces collapse despite receiving what are described as solvent takeover offers. On Wednesday, executives from Gordon Brothers and Poundland separately held meetings with government ministers regarding the retailer's future, amid government criticism of the owner's handling of the chain.

Sky News reports that Gordon Brothers has appointed a team of top London lobbyists as it faces intensifying political pressure over Poundland's fate. The future remains uncertain for stores and employees, with multiple interested parties previously reported to have expressed interest in acquiring the brand.

How it is being reported

• Poundland owners issue update on store closures — what will happen to shops and jobs?Owners Gordon Brothers say ‘all avenues’ are being pursued to protect jobsThe Independent · 5 Nov, 10:43
• Poundland owner turns to Thames Water creditors' lobbying firm as political heat risesThe embattled owner of Poundland has parachuted in a team of top London lobbyists as it faces intensifying political pressure over the discount retailer's fate.Sky News · 5 Nov, 09:41
• Poundland owners issue update on ‘challenged and vulnerable’ high-street chainPoundland filed a notice to appoint administrators last week, putting the future of its roughly 11,000 workers at riskIndependent Business · 5 Nov, 09:28
• Poundland’s US owner says retailer remains ‘vulnerable’, after talks with ministersGordon Brothers still in ‘active discussions’ with interested parties and seeks to ‘protect as many jobs as possible’ The US owner of Poundland has said the high street chain remains “challenged and vulnerable” after holding talks with ministers amid government criticism of its handling of the retailer. Gordon Brothers said in a statement on Thursday morning that it was still in “active discussions” with interested suitors and had been seeking to “protect as many jobs as possible”. Continue reading...Guardian Business · 5 Nov, 08:57
• Poundland is ‘challenged and vulnerable’ say owners after talks with ministersGordon Brothers said they still are in ‘active discussions’ with interested suitors.Evening Standard · 5 Nov, 07:52
• Poundland is ‘challenged and vulnerable’ say owners after talks with ministersGordon Brothers said they still are in ‘active discussions’ with interested suitors.Independent Business · 5 Nov, 07:52

In this story: Gordon Brothers · Poundland · AlixPartners

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