Poundland is facing an increased threat of going under as the directors brought in to oversee the retailer's sale are poised to step down, according to reports.
Sky News claims the three directors appointed on 15 October are set to quit following a row with Poundland's majority owner, Gordon Brothers. The disagreement revolves around the shareholders' refusal to accept a solvent bid for the business from Martin Property Group, Sky also reported.
Directors appointed for sale process
The directors were brought on board after majority owner Gordon Brothers, which acquired Poundland just last year, initiated a sale process for the high street chain earlier this month. The group has installed Andrew Kirkpatrick, Stephen Welch and Dominic Young as directors.
Mr Kirkpatrick previously served as an adviser to Steinhoff International, the South Africa-based former proprietor of Poundland. Mr Welch is a restructuring specialist who formerly held a directorship at the Telegraph and currently chairs fintech company FNZ. The firm has also appointed Dominic Young, a former director of the Spectator magazine's parent company.
Statement from Gordon Brothers
At the time, a spokesman for Gordon Brothers stated: "After commencing a thorough sale process for the entirety of the company, prompted by interest from several parties, active discussions continue with a number of potential acquirers."
"The offers include those from buyers for the whole business and also indicative offers for significant viable parts of the business from established retail operators. The board will now objectively evaluate these options, considering all relevant stakeholders, with a view to minimising uncertainty for the people, suppliers and local communities with an interest in the business and its future."
Concerns over insolvency push
Sky News reports that the trio had voiced concerns over what appeared to be efforts by Gordon Brothers to steer Poundland towards an insolvency process. Sky also understood that Martin Property Group had tabled a solvent offer for the retailer.
Gordon Brothers and Martin Property Group have both been approached for additional comment. In a bid to reverse substantial losses, Poundland closed upwards of 100 stores throughout the UK as part of a major restructuring drive.
