Andy Burnham has urged the current owner of Poundland to sell the brand and protect jobs. The Prime Minister acknowledged it was a “deeply worrying time for Poundland staff”, and said the Government is “ready to support” them.
Administration filing threatens 12,000 workers
It comes after Poundland filed to appoint administrators, threatening the future of around 12,000 workers. Court filings show that the retailer filed a notice of intention to appoint administrators on Thursday afternoon, which will give the business 10 working days of breathing space from creditors to secure a potential rescue deal.
Advisers are still in talks with parties interested in buying the brand and swathes of stores.
Burnham calls for jobs to be protected
Mr Burnham said: “This is a deeply worrying time for Poundland staff and their families. We want to see jobs protected.
“If there was a potential owner to avoid this that hasn’t been accepted, then the Business Secretary and I want to know why that is the case. We stand ready to support the workforce however we can.”
Owner rejects takeover offer
It comes after owner Gordon Brothers rejected a takeover offer from Irish firm Martin Property Group, which management named as their preferred bidder earlier this month.
Gordon Brothers, which only bought Poundland last year for £1, launched a sale process for the retailer at the start of September. Poundland currently runs around 600 stores across the UK.
Interested buyers and potential impact
Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella are all understood to be interested in buying parts of the Poundland business.
Other retailers including B&M, Lidl and Aldi are also reportedly interested in buying stores. However, deals are unlikely to include all Poundland stores and some jobs are likely to be impacted.
