By Ahmed Abdelsalam
High street discounter Poundland has filed a notice of intention to appoint administrators, threatening the future of around 12,000 workers across its roughly 600 UK stores. The filing grants the company 10 working days of legal protection from creditors while advisers seek a rescue deal.
Management warns of avoidable crisis
Managing director Barry Williams told staff in a memo that the situation is "unexpected, unwanted and wholly avoidable." The board said a formal sale process launched two months ago attracted several established retail operators, but no acceptable offer for the business as a whole emerged.
Owner rejects preferred bidder
Owner Gordon Brothers, which bought Poundland for £1 last year, rejected a takeover offer from Irish real estate firm Martin Property Group, previously named as management's preferred bidder. Gordon Brothers had closed more than 100 shops over the past year in a turnaround effort.
Multiple parties interested in parts of business
CDS Superstores (owner of Wilko and The Range), Fortress (owner of Poundstretcher), and Modella (owner of TG Jones) are all understood to be interested in acquiring portions of the Poundland estate. Advisers at AlixPartners have been appointed to oversee the insolvency process and assess offers for all or parts of the business.
Poundland stores remain open as normal while the administration process unfolds.
