Poundland faces an escalating threat of administration as the three directors brought in to oversee the retailer's sale process are poised to step down, according to reports. Sky News claims the directors appointed on 15 October are set to resign following a dispute with Poundland's majority shareholder, Gordon Brothers.
Dispute over solvent bid
The disagreement revolves around the shareholders' refusal to accept a solvent bid for the business from Martin Property Group, Sky also reported. The directors' appointments followed the decision by majority owner Gordon Brothers, which acquired Poundland only last year, to initiate 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 turnaround specialist who formerly held a directorship at the Telegraph and currently serves as chairman of fintech company FNZ. The appointments also include Dominic Young, a former director of the Spectator magazine's parent firm.
Sale process underway
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."
Sky News reported 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 submitted a solvent offer for the retailer.
Impact on jobs and stores
The Daily Express has approached both Gordon Brothers and Martin Property Group for additional comment. Poundland closed more than 100 stores across the UK as part of a restructuring drive, aimed at reversing substantial losses.
The discount retailer employs in excess of 10,000 staff and operates around 600 stores nationwide. Its potential collapse would place thousands of jobs in jeopardy, possibly coinciding with John Healey's first budget as chancellor of the exchequer.
