By Salma El-Sakka
High street discounter Poundland has filed a notice of intention to appoint administrators, putting around 12,000 jobs at risk. Court filings show the retailer submitted the notice on Thursday afternoon, granting the business 10 working days of protection from creditors while a rescue deal is sought.
Rescue talks underway
Advisers are in talks with several parties interested in acquiring the brand and a significant number of stores. Managing director Barry Williams said no acceptable offer for the business as a whole had been identified, but formal offers from established retail operators cover a substantial portion and offer the best prospects for preserving jobs.
Potential buyers
CDS Superstores, Fortress, Modella, B&M, Lidl and Aldi are all understood to be interested in buying parts of the Poundland estate. Any deals are unlikely to encompass all 600 stores, meaning some job losses are probable.
Background
Owner Gordon Brothers, which acquired Poundland for £1 last year, launched a formal sale process in September. The owners rejected a solvent takeover bid from Martin Property Group, partly over a £30 million loan requirement. Williams described the situation as "unexpected, unwanted and wholly avoidable" in a memo to staff.
Stores remain open
Poundland emphasized that all its stores continue to trade normally. Corporate advisory firm AlixPartners is expected to be appointed as administrators.
