Andy Burnham has called on Poundland's owners to work with the government on a "practical solution" to safeguard the future of its workforce and stores.
The Prime Minister criticised Gordon Brothers, the US investment firm that owns the discount retailer, for failing to engage with the "viable propositions" put forward by several potential bidders.
Downing Street's intervention follows mounting political pressure on Gordon Brothers, with figures from both Labour and Reform UK condemning the Poundland owner's handling of the attempted sale.
PM's call for action
Burnham said: "[Gordon Brothers should] focus on the people in your employment. [...] Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions."
"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," he added, as reported by City AM.
On Tuesday, a Downing Street spokesperson stated that Gordon Brothers is "not acting in the best interests" of its 12,000 employees and 600 outlets.
"Gordon Brothers need to explain why they haven't accepted any offer to keep the company going. That's the case," they said.
Government meetings and bids
Business secretary Jonathan Reynolds is scheduled to meet with Gordon Brothers today, while future of work minister Kate Dearden is set to hold discussions with Poundland's managing director and finance officer, Barry Williams and Shaun Wills, also on Wednesday.
Poundland's owners rejected a solvent bid from Irish firm Martin Property Group due to its failure to offer upfront payment on a £30m loan inherited from the retailer's previous owners, PepCo.
Innovest, an Irish investment firm, had also submitted a solvent bid for Poundland. While this offer proposed to settle the £30m loan upfront, it is not currently under consideration as the bidder was unable to furnish proof of funds.
Further interest and political pressure
Robert Jenrick, Reform UK's Treasury spokesman, told City AM on Monday that he has been offering support to multiple Poundland bidders as he hit out at "greedy" Gordon Brothers.
It emerged on Wednesday that a further bidder is looking to acquire Poundland as a going concern. Xyra Group Holdings, a little-known investment group with no prior retail acquisitions, has put forward an offer of £12.5m upfront for the business, as first reported by ITV News.
Gordon Brothers is understood to be weighing up the bid, according to sources close to the matter, though Xyra will need to demonstrate proof of funds and address concerns amongst Poundland's owners regarding its limited retail experience.
The government has faced mounting pressure to step in and safeguard Poundland's workforce, however shadow chancellor Andrew Griffith argued on Tuesday that Labour should steer clear of an "interventionist" approach, advocating instead for reduced costs for employers.
Poundland filed a notice to appoint administrators last Thursday, raising the likelihood that the business will be carved up amongst multiple buyers. Retailers such as Lidl, Tesco, Iceland, B&M, The Range and Poundstretcher are among those eyeing up potential acquisitions of Poundland's outlets should the business go under.
Gordon Brothers is understood to have secured buyers for roughly half of Poundland's 600 stores, but is in a race against the clock to find takers for the remaining sites before the moratorium expires next Thursday, according to sources.
