The Prime Minister has said there is still an "opportunity to save jobs" at Poundland following a meeting between the Government and the chain's owners this week, as the future of the firm and around 11,000 workers remains uncertain.
Andy Burnham told the BBC that the meeting between Business Secretary Jonathan Reynolds and Gordon Brothers, which bought Poundland for £1 last year, was "reasonably constructive".
Talks described as constructive
In an interview with BBC News, Burnham said: "We're in a better place at the end of this week than we were at the end of last week, but it's not done yet."
He added: "But the Government will be working hard to hold the owners of Poundland to the things that they said yesterday."
Burnham continued: "There is an opportunity to save jobs. We hear there are many other retailers interested. We will work hard to bring a good resolution to this situation."
Sale process and potential insolvency
Gordon Brothers, which launched a sale process for the company at the start of September, is under pressure to accept a bid to save the 600-strong chain, which is on the brink of collapse despite receiving solvent takeover offers.
Poundland filed a notice of intention to appoint administrators last week, giving the owners 10 days of breathing room from creditors to strike a rescue deal. However, it is understood Gordon Brothers has lined up advisory firm AlixPartners to oversee a potential insolvency if a takeover deal is not agreed.
On Thursday, the US owner said the high street chain remains "challenged and vulnerable" and it is seeking to "protect as many jobs as possible". Earlier this week, executives from Gordon Brothers and Poundland separately held meetings with Government ministers regarding the future of the retailer.
Takeover offers and parliamentary scrutiny
Gordon Brothers has received takeover offers from Irish real estate business Martin Property Group and investment firm Xyra Holdings. It has also received a number of offers for parts of the business from major retailers, including Tesco, Poundstretcher and B&M, which would ultimately lead to a break-up of the business.
Poundland's US owners are set to give evidence to MPs in private next week as talks continue over the future of the discount chain. Earlier this week, Liam Byrne, chairman of Parliament's Business, Innovation, Science and Trade Committee, called on bosses at Gordon Brothers to face questioning over its stewardship of the business.
Sky News reported earlier on Friday that the US investment firm sought to have an evidence session behind closed doors to avoid it becoming "a show trial". Byrne confirmed that the committee will permit a private session in "the first instance" following assurances on Thursday that Gordon Brothers is holding talks to seek a sale deal which could preserve jobs at Poundland.
Byrne added: "Since we asked Gordon Brothers to appear before Parliament, we've been in daily contact and we understand they are now in active talks with several credible buyers about selling Poundland as a going concern."
He continued: "We want those talks to succeed and we want to understand what I know will be highly sensitive commercial information in detail. When you own a retailer of this size, the decisions you take in the boardroom are felt in homes and on high streets up and down the country. Parliament must know that every step possible is being taken to save the business."
