Business Secretary Jonathan Reynolds has written to Gordon Brothers, the US investment firm that owns Poundland, as concern grows that the discount retailer could go into administration, The Guardian reports.
Gordon Brothers bought the 600-store chain, which employs about 12,000 people, for £1 last year. Sources said it was preparing to appoint AlixPartners as administrator after turning down an offer from Northern Ireland's Martin Property Group to buy the whole business, including the Dealz chain in Ireland, as a going concern. Three independent directors have resigned.
The owner is understood to believe a break-up sale of stores and stock would raise more money. Poundland's chief executive, Barry Williams, called the rejection of the bid avoidable, and the shopworkers' union Usdaw urged ministers to do all they can to save jobs. The government said it was a commercial matter.
Source: The Guardian
