Poundland's US owner, Gordon Brothers, is set to give evidence to MPs in a private session next week as talks continue over the future of the discount chain. The move follows a call from Liam Byrne, chairman of Parliament's Business, Innovation, Science and Trade Committee, for the firm's bosses to face questioning over their stewardship of the business.
Private session agreed amid sale talks
Sky News reported earlier on Friday that Gordon Brothers, which bought Poundland for £1 last year, sought to have the evidence session behind closed doors to avoid it becoming "a show trial". Mr Byrne confirmed that the committee will permit a private session in "the first instance" following assurances on Thursday that Gordon Brothers is holding talks to seek a sale deal which could preserve jobs at Poundland.
Mr Byrne said: "Since we asked Gordon Brothers to appear before Parliament, we've been in daily contact and we understand they are now in active talks with several credible buyers about selling Poundland as a going concern." He added: "We want those talks to succeed and we want to understand what I know will be highly sensitive commercial information in detail."
Future of stores and workers at stake
The future of Poundland's 600 stores and roughly 11,000 workers remains in the balance as talks continue over a potential sale deal. The group filed a notice of intention to appoint administrators last week, giving the owners 10 days of breathing room from creditors to strike a rescue deal.
It is understood that Gordon Brothers has lined up advisory firm AlixPartners to oversee a potential insolvency if a takeover deal is not agreed. On Thursday, the US owner said the high street chain remains "challenged and vulnerable" and it is seeking to "protect as many jobs as possible".
Takeover offers and government meetings
Earlier this week, executives from Gordon Brothers and Poundland separately held meetings with Government ministers regarding the future of the retailer. Gordon Brothers has received takeover offers from Irish real estate business Martin Property Group and investment firm Xyra Holdings. It has also received a number of offers for parts of the business from major retailers, including Tesco, Poundstretcher and B&M, which would ultimately lead to a break-up of the business.
