Prime Minister Andy Burnham has urged Poundland's US-based owner Gordon Brothers to work with ministers to save stores and around 11,000 jobs as the Government intensifies efforts to rescue the struggling retailer.
His comments came as Business Secretary Jonathan Reynolds was due to meet the owners following criticism of how they have handled the business. It follows Poundland's decision to file a notice of intention to appoint administrators last week, putting around 11,000 jobs at risk and raising fears the chain could be broken up.
Government calls for practical solution
Gordon Brothers, which bought Poundland for £1 last year, launched a sale process for the business at the start of September. It is now under pressure to accept a deal that could preserve parts of the chain, despite interest from several major retailers.
Asked what message he had for Poundland's executives, Mr Burnham said: "Focus on the people in your employment.
"Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions."
He added: "They're on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let's find it."
Retailers express interest in stores
He added the Government was "prepared to find what we can do" to help save the chain. Among the potential buyers is Tesco, which has held talks about a proposal to acquire as many as 150 Poundland stores – potentially around a quarter of its UK and Ireland estate.
Sources with knowledge of the process told the Press Association that the UK's largest supermarket had approached Poundland's owner about buying the sites. Tesco declined to comment.
Poundland currently operates around 600 stores across the UK and Ireland, including approximately 70 under the Dealz brand in Ireland.
Other retailers are also understood to be interested in acquiring stores. Poundstretcher owner Fortress has reportedly considered buying as many as 250 shops, while Iceland, Lidl, Wilko and The Range owner CDS Superstores, and B&M have also expressed interest in sites.
The interest comes amid growing concerns that Poundland could be broken up, despite a solvent takeover proposal being put forward by Irish real estate firm Martin Property Group.
