Poundland has filed to appoint administrators, putting around 12,000 workers at risk of joblessness. The high street discounter submitted a notice of intention on Thursday afternoon (October 29), giving the business 10 working days of 'breathing space' from creditors to secure a rescue deal, according to court filings.
Rescue talks and preferred bidder rejected
Advisors are reportedly still in talks with interested parties regarding buying the brand and a large number of its shops. Poundland managing director Barry Williams told staff in a memo that the situation is "unexpected, unwanted and wholly avoidable".
The move follows owner Gordon Brothers rejecting a takeover offer from Irish real estate firm Martin Property Group, which management had named as their preferred bidder earlier this month. Gordon Brothers, which bought Poundland last year for £1, launched a sale process for the retailer at the start of September. Poundland currently runs around 600 stores across the UK.
Board disputes and government concern
Insiders claim some on the board have been trying to agree on a buyout offer from another firm, with others at loggerheads about the future of the popular store. Sources told Sky News that the main dispute centres on the group not accepting a "solvent offer from Martin Property Group" and are now thinking of walking away from the board as an agreement cannot be reached.
The news comes days after The Telegraph revealed the government was "on alert" over the risk of thousands of job losses at Poundland after being told about the difficulties the chain faced. Downing Street was made aware of concerns that the chain was put up for sale, amid fears about the economy just before Christmas.
Should Poundland close, it would be one of the biggest casualties on the high street in recent times and place over 12,000 jobs at risk.
