Poundland is reportedly facing an increased threat of collapse as the directors brought in to oversee the retailer's sale process are poised to step down, according to reports. Sky News has claimed that the three directors appointed on 15 October are expected to resign following a dispute with Poundland's majority shareholder, Gordon Brothers.
Dispute over solvent bid
The disagreement reportedly revolves around the shareholders' refusal to accept a solvent bid for the business from Martin Property Group, Sky also reported. The directors were installed after majority owner Gordon Brothers, which acquired Poundland only last year, initiated a sale process for the high street chain earlier this month.
The group appointed Andrew Kirkpatrick, Stephen Welch and Dominic Young as directors. Mr Kirkpatrick previously served as an adviser to Steinhoff International, the South Africa-based former owner of Poundland. Mr Welch is a restructuring specialist who formerly held a director role at the Telegraph and currently serves as chairman of fintech firm FNZ. The company has also appointed Dominic Young, a former director of the Spectator magazine's parent company.
Sale process and stakeholder concerns
At the time, a spokesman for Gordon Brothers said: "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."
According to Sky News, the trio had voiced concerns over what seemed to be efforts by Gordon Brothers to steer Poundland towards an insolvency process. Sky also understood that Martin Property Group had submitted a solvent bid for the company.
Impact on jobs and operations
The Daily Express has approached Gordon Brothers and the Martin Property Group for additional comment. Poundland closed more than 100 branches across the UK as part of its restructuring, designed to reverse substantial losses.
Poundland employs more than 10,000 staff and operates approximately 600 outlets. Its potential collapse would place thousands of jobs in jeopardy, possibly coinciding with John Healey's first budget as chancellor of the exchequer.
