By Salma El-Sakka
Prime Minister Andy Burnham has urged Poundland's US-based owners, Gordon Brothers, to engage with the government to secure a future for the discount chain and protect roughly 11,000 jobs. The retailer filed a notice to appoint administrators last week, putting its high-street stores at risk.
Government pressure on Gordon Brothers
Business Secretary Jonathan Reynolds is set to meet Gordon Brothers this week amid criticism of their handling of the sale process. Burnham said the government is prepared to find practical solutions and called on executives to focus on their employees and viable stores. Downing Street stated the owners do not appear to be acting in the best interests of staff and communities.
Interest from rival retailers
Several major chains have expressed interest in acquiring parts of the business. Investment group Xyra proposed a £12.5 million upfront payment, while Tesco held talks to buy up to 150 stores. Fortress, owner of Poundstretcher, showed interest in as many as 250 shops, and other grocers including Iceland, Lidl, Wilko, CDS Superstores and B&M are also in the frame.
Nationalisation talk dismissed
Business minister Lord Leong declined to rule out nationalisation in the House of Lords, but the Department for Business, Innovation, Science and Trade said he had misspoken. Officials played down the prospect of state takeover, emphasising a commercial rescue.
Parliamentary scrutiny
The Commons Business, Innovation, Science and Trade Committee has requested Gordon Brothers appear next week to answer questions about their actions. Business minister Kate Dearden is also due to hold talks with Poundland's chief executive and chief finance officer.
