The discount chain was pushed toward insolvency when current owner Gordon Brothers ceased funding, filed for administration, and rejected an acquisition bid from Martin Property Group. While founder Steve Smith has proposed injecting capital, the retailer has until Thursday to secure a viable path forward. The board maintains that comprehensive rescue proposals have failed to meet necessary terms, despite the company posting sales growth of over 11% compared to last year.
Key points
Up to 12,000 store employees and an estimated 20,000 to 30,000 supply chain jobs depend o…: Up to 12,000 store employees and an estimated 20,000 to 30,000 supply chain jobs depend on securing a rescue deal by Thursday.
Business Minister Kate Dearden will hold a fact-finding meeting with executives, but gove…: Business Minister Kate Dearden will hold a fact-finding meeting with executives, but government sources indicate limited scope for state intervention.
The company board stated that extensive efforts have so far failed to produce an acceptab…: The company board stated that extensive efforts have so far failed to produce an acceptable transaction to save the entire business.
Sources checked by our analysis pipeline: 1
Ex-Poundland owner says he'd invest in firm
- Published
The former owner of Poundland has said he would invest in the firm as a government minister said she would meet the firm's board.
Steve Smith, who left the business in 2006, said he had attempted to contact owners Gordon Brothers having been "really surprised" to learn about them filing for administration when sales were up 11% on last year.
The BBC understands that Business Minister Kate Dearden will meet with senior Poundland executives later this week to discuss the company's threatened insolvency.
US-based Gordon Brothers said it was evaluating interest for the whole business and formal and indicative offers for significant viable parts of it.
Gordon Brothers, who bought the firm from Polish retail group Pepco last year for £1, has stopped funding the business and rejected a takeover offer from Irish firm Martin Property Group (MPG).
The retailer has given the business until Thursday to find a rescue deal, putting up to 12,000 staff at risk.
It's understood the meeting with Deardon will be predominantly a "fact finding" meeting…
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