By Karim Hammam
The US owners of Poundland, Gordon Brothers, said on Thursday that the high-street chain remains “challenged and vulnerable” as they continue talks with government ministers and potential buyers. The retailer filed a notice of intention to appoint administrators last week, giving the business 10 working days of protection from creditors to secure a rescue deal and putting roughly 11,000 jobs at risk.
Sale process under way
Gordon Brothers, which acquired Poundland for £1 last year and launched a formal sale process in September, said it is pursuing “all avenues” to protect as many jobs as possible. A spokesperson said the company has provided significant funding and pursued a radical restructure, but the business remains vulnerable to any downturn in trading. Advisers are still in active discussions with interested parties for the brand and swathes of stores.
Ministers urge practical solution
On Wednesday, executives from Gordon Brothers and Poundland held separate meetings with ministers about the retailer’s future. Andy Burnham, referred to as Prime Minister in the statement, said the owners must focus on their employees and come up with a practical solution to keep viable stores open. He said the government was prepared to help find a way to save the chain, which he described as important to local communities.
