Poundland's owners, Gordon Brothers, have vowed to protect "as many jobs as possible" after the discount chain filed to appoint administrators, placing 12,000 employees and 600 stores at risk.
The US investment firm broke its silence after facing criticism for rejecting a bid that would have saved the retailer. In a statement shared by This is Money, a spokesperson said the business "has faced several years of instability" and is now looking at "all avenues" to safeguard jobs.
Statement on the Sale Process
Gordon Brothers said: "When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company's ability to trade."
The statement added: "In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading."
Hitting back at claims it aimed to profit, the firm said: "Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for the people, creditors and local communities who care about this business as much as we do."
Background of the Chain's Troubles
Gordon Brothers purchased Poundland for £1 in 2025 and placed the chain under a radical overhaul, including closing around 200 of its then 800 stores. Many closures were in Scotland, with stores in Port Glasgow, Edinburgh and Kilmarnock closing last year, leaving just 50 in the country.
Bosses also introduced a 'return to basics' strategy that cut the loyalty scheme and online shopping, reduced frozen foods, and brought back the singular pound pricing strategy.
Sale and Administration Filing
Despite "improved sales growth," rumours in September suggested Gordon Brothers were keen to sell. Alvarez & Marsal (A&M) were employed to oversee the auction, which was initially set to conclude in October.
The sale attracted interest from Iceland, The Range and B&M, with bids to buy over select stores if the business was 'split up'. On October 29, Gordon Brothers filed a notice of intention to appoint administrators, giving creditors 10 working days to secure a rescue deal.
Martin Property Group emerged as the preferential bidder, but Gordon Brothers rejected the Irish firm's offer. The investment firm now faces demands from the business select committee for answers before the end of Thursday, November 5. Prime Minister Andy Burnham has said the government was 'prepared to find what we can do' to help save the chain.
If Poundland goes under, it could mark one of the biggest UK high street collapses since Debenhams crumbled in 2021, resulting in the loss of 12,000 jobs at the time.
