By Salma El-Sakka
High street discounter Poundland has filed a notice of intention to appoint administrators, putting around 12,000 jobs at risk across its roughly 600 UK stores. The filing on Thursday gives the company 10 working days of protection from creditors while it seeks a rescue deal.
Rescue talks continue
Advisers are reportedly in talks with several parties interested in acquiring the brand and large portions of its store estate. Potential buyers include CDS Superstores, owner of Wilko and The Range; Fortress, owner of Poundstretcher; and Modella, owner of TG Jones.
Owner rejects preferred bidder
The move follows owner Gordon Brothers' rejection of a takeover offer from Irish real estate firm Martin Property Group, which Poundland's management had named as their preferred bidder earlier this month. Gordon Brothers, which acquired Poundland for £1 last year, launched a formal sale process in September.
Management criticizes decision
Managing director Barry Williams told staff in a memo that the situation was “unexpected, unwanted and wholly avoidable.” A Gordon Brothers spokesperson said attention would now turn to other active bids, including offers for viable parts of the business, with the aim of minimizing uncertainty for employees and stakeholders.
