Poundland is expecting to secure an extension to a midnight deadline to find a buyer, raising hopes that the struggling retailer can gain more breathing space to finalise a rescue deal. The company filed a notice of intention to appoint administrators at the end of October, which gave the business 10 days to secure a deal before the deadline expires.
It is understood that a deal has not yet been reached, but the company is expecting an extension that would allow more time, according to sources cited by the BBC. Poundland's owners have reportedly enabled the release of around £10 million worth of funding to be used for paying staff, taxes and suppliers of stock.
Extension Could Keep Creditor Deal on the Table
Any extension to Wednesday's deadline could mean the prospect of a deal that would satisfy the company's creditors remained on the table. If not, administrators would be expected to be appointed, with corporate advisory firm AlixPartners understood to be lined up. This would pose a threat to the future of its roughly 600 shops and 11,000 employees.
Advisers have been in talks with parties interested in buying the brand or parts of the business, such as swathes of shops. Talks have been held with potential bidders including Tesco over proposals to buy up to 150 shops, and other chains such as Iceland and Lidl.
Potential Buyers Emerge
Investment firm Xyra Holdings has emerged as a potential buyer for the entirety of the business, while Irish real estate firm Martin Property Group is believed to remain interested in a deal. Gordon Brothers previously rejected a takeover offer from Martin Property Group but management named them as their preferred bidder last month.
The owners were due to give evidence to MPs on Wednesday in a private session after being called by the Business, Innovation, Science and Trade Committee for questioning. Poundland's managing director Barry Williams told Sky News that he was "representing 11,000 colleagues" as well as thousands in the broader supply chain and "maybe even the retail industry" at the meeting. Asked whether he could guarantee the security of jobs and keep the business going in the run-up to Christmas, he said there were "no guarantees at this point".
