Poundland has filed a second notice of intention to appoint administrators in a last-ditch bid to secure a rescue deal, after its original deadline to hammer out a package expired at midnight on Thursday morning. The move is designed to shield the business from creditors while bosses continue crunch talks with three potential buyers looking to acquire the entire company.
If the courts approve the request, the chain will gain an extra 10 working days of breathing space to avoid going under, according to reports. Should no buyer step forward in time, the retailer faces crashing into administration, putting 600 shops and thousands of livelihoods at risk.
Board Statement and Buyer Talks
In a statement, the Poundland board said it would lodge a "second NOI with a view to identifying the best available prospects for shareholders, creditors and our people." They added: "This extends the current protections over the business for a further 10 working days. Our stores remain open as usual during this period, and we thank our colleagues, suppliers and customers for their incredible and continued support."
The crisis began roughly a fortnight ago when Poundland's American owners, Gordon Brothers, lodged an initial notice of intention to appoint administrators, just 12 months after snapping up the chain for a single pound.
Interventions and Job Fears
Fears over the retailer's fate have sparked high-profile interventions. Company founder Steve Smith penned an emotional plea to King Charles last night in a bid to rescue the brand he started. Smith has previously sounded the alarm that 30,000 jobs could be wiped out if the retailer goes bust.
Prime Minister Andy Burnham last week piled pressure on top brass, demanding they "focus on the people in your employment" and "come up with a practical solution that saves jobs." Gordon Brothers has faced backlash after turning down a solvent rescue offer from Martin Property Group that could have kept the whole business intact.
Potential Outcomes and Payroll Assurance
London-based Xyra Holding Group has thrown its hat into the ring, but a failure to find a single buyer could see the chain carved up, with high street rivals B&M and Poundstretcher eyeing up chunks of the business.
A spokesman for Gordon Brothers said: "We support the board's decision to extend the legal moratorium over the company by a further ten working days. This brings additional stability amid an ongoing sale process in the backdrop of increasing cost pressures and a difficult inflationary economic environment."
"With this decision, we are today able to confirm to Poundland employees that funds will be released to allow payroll to be made in full this month, while additional funds continue to be released to support Poundland's ongoing trading. We are in discussions with three parties for a sale of the whole business, and we have also received several offers from established high street retailers for significant parts of the business."
