By Salma El-Sakka
Poundland's US owner Gordon Brothers said the retailer remains "challenged and vulnerable" following talks with government ministers, as the chain faces potential administration threatening around 12,000 jobs.
Administration Notice Filed
Last week Poundland filed a notice of intention to appoint administrators, giving the business 10 working days to secure a rescue deal. The move came after Gordon Brothers, which bought the chain for £1 last year, ceased funding and appointed AlixPartners to run a sale process.
Government Talks
On Wednesday, executives from Gordon Brothers and Poundland met separately with ministers to discuss the retailer's future. Advisers continue talks with interested buyers for the brand and a large number of stores.
Owner's Statement
In a statement Thursday, a Gordon Brothers spokesperson said the company is pursuing all avenues to protect jobs and preserve value. The owner acknowledged the business remains vulnerable despite restructuring efforts and significant funding provided since acquisition.
Political Pressure
Greater Manchester Mayor Andy Burnham urged the owner to find a "practical solution" to keep stores open and save jobs, emphasizing the chain's importance to high streets and communities. He said the government is prepared to help.
Supplier Concerns
Suppliers facing potential losses warned that Gordon Brothers should not be allowed to maximize its return at their expense if Poundland collapses.
