Poundland has filed a notice to appoint administrators, according to court documents, putting thousands of jobs at risk. The discount retailer, which runs around 600 stores across the UK, is set to enter insolvency after its owner, Gordon Brothers, rejected a takeover offer from Irish real estate firm Martin Property Group.
Rescue deal efforts and insolvency process
The filing gives the business 10 working days of breathing space from creditors to secure a potential rescue deal. Poundland managing director Barry Williams told staff in a memo that the situation is "unexpected, unwanted and wholly avoidable", PA reported.
Gordon Brothers, which bought Poundland last year for £1, launched a sales process for the retailer at the start of September. Management had named Martin Property Group as their preferred bidder earlier this month.
Interested buyers and store portfolio
Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress, and TG Jones owner Modella are all understood to be interested in buying parts of the Poundland business. Advisers at AlixPartners have been appointed to oversee the insolvency process and assess offers to buy all or parts of the business.
Poundland currently employs around 12,000 staff members. Gordon Brothers had overseen a major turnaround programme at Poundland that included closing more than 100 shops over the past year in an effort to shore up its finances.
In Merseyside, there is one remaining store in Liverpool, situated at New Mersey Retail Park in Speke. There are also stores in Bootle Strand Shopping Centre, Grange Precinct in Birkenhead, and Ravenhead Retail Park in St Helens.
