By Karim Hammam
Andy Burnham said there remains an opportunity to save jobs at Poundland following a meeting between Business Secretary Jonathan Reynolds and the chain's owners, Gordon Brothers, this week. The future of the discount retailer and around 11,000 workers hangs in the balance.
Government Meeting with Owners
Burnham told the BBC the talks were "reasonably constructive" and that the government is in a better position than last week, though a resolution is not yet finalized. He emphasized the government will hold the owners to their commitments.
Takeover Offers and Administration Risk
Gordon Brothers, which bought Poundland for £1 last year, launched a sale process in September. The chain filed a notice of intention to appoint administrators last week, granting 10 days of protection from creditors to secure a rescue deal. Advisory firm AlixPartners has been lined up to oversee a potential insolvency if no takeover is agreed.
Several takeover offers have been received, including from Irish real estate business Martin Property Group and investment firm Xyra Holdings. Major retailers Tesco, Poundstretcher and B&M have also bid for parts of the business, which could lead to a break-up.
Parliamentary Scrutiny
Gordon Brothers executives are set to give evidence to MPs in private next week as talks continue. Liam Byrne, chair of the Business, Innovation, Science and Trade Committee, said the committee will allow a private session initially after assurances that active talks with credible buyers are underway to sell Poundland as a going concern.
