Poundland's looming collapse could be delayed to allow for a last-ditch rescue deal, potentially sparing more than 10,000 jobs just before Christmas.
A deadline to secure a buyer for the discount chain is set to expire at midnight, with a failure to do so risking its plunge into administration. However, sources say this could be extended to give more time for discussions with possible buyers.
Break-Up More Likely Than Full Rescue
While there is a slim chance that the entire business could be saved, it appears more likely there will be some form of break-up. Previous reports have suggested other retailers are interested in taking over the leases of some of its 600 stores.
Poundland's threatened collapse risks more than 10,000 job losses just before Christmas. Hopes of extending the appointment of administrators come after reports that Poundland's US owners have released £10 million in funding, supposedly to pay suppliers.
Shelf Gaps and Funding Concerns
Pictures have shown gaps on shelves in Poundland stores after suppliers halted deliveries for fear of not getting paid. However, the Mirror revealed Poundland's management are being denied access to sales flowing through the chain's tills, which totalled £30 million last week alone.
MPs to Question Executives
Gordon Brothers' top UK executive will be questioned on Wednesday afternoon behind closed doors. The firm will be represented by Mark Newton Jones, the former Mothercare boss who now runs investment firm Gordon Brothers' operations in Europe. Also due to appear before MPs on the Business Committee is Poundland chief Barry Williams.
MPs are likely to question him on claims that Poundland's threatened collapse was caused by it starving the retailer of funds, updates on any buyer, and what its intentions were when it bought the business for just £1 last year.
Gordon Brothers has rejected a number of approaches for the chain. Those include from Martin Property Group, the Northern Irish company, which wanted to buy Poundland as a going concern, and whose offer was supported by the retailer's management.
A spokesperson at Gordon Brothers said: “We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value. Work continues at pace, engaging in active discussions on offers with interested parties.”
