Poundland has filed for administration, putting up to 12,000 high street jobs at risk across its 600 stores in the UK. Prime Minister Andy Burnham has broken his silence on the collapse, suggesting his Government may intervene to support the workforce.
Government Demands Answers Over Rejected Bids
Directors of the discount chain filed a notice of intention to appoint administrators on Thursday. The company has its largest distribution hub in Mr Burnham's Makerfield constituency. The Prime Minister has joined Business Secretary Jonathan Reynolds in seeking answers over why bids to buy the firm from its current owners, Gordon Brothers, have been turned down.
Earlier this week, the Irish firm Martin Property Group reportedly offered to buy the whole chain.
Prime Minister's Response
Speaking as Poundland filed its notice, 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."
Mr Reynolds said: "If it is true that it was not necessary to put the business into administration then the present owners will have to account for that."
Company Statement on Sale Process
Company bosses issued a statement saying: "Over the past two months, initially prompted by interest from several parties, we have been working on a formal sale process for Poundland.
"Despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole.
"The process has however attracted several established retail operators who have made formal offers, collectively these cover a significant part of the business, and we believe offer the best available prospects for shareholders, creditors and to preserve jobs.
"We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment. We thank all stakeholders, and in particular our people for their support during this period."
Many fear thousands of Britons could lose their jobs if the firm collapses, with the Government now seeking clarity on the rejected bids.
