Poundland is ‘challenged and vulnerable’ say owners after talks with ministers

The US owners of Poundland have said the high street chain remains “challenged and vulnerable” after holding talks with ministers amid Government criticism of their handling of the retailer.

Gordon Brothers said in a statement on Thursday morning that they still are in “active discussions” with interested suitors and have been seeking to “protect as many jobs as possible”.

It comes after Poundland filed a notice to appoint administrators last week, putting the future of its roughly 11,000 workers at risk.

Gordon Brothers, which only bought Poundland last year for £1 and launched a sale process for the company at the start of September, is under pressure to accept a bid to save the retailer, which is on the brink of collapse despite receiving solvent takeover offers.

Last week, the owners filed a notice of intention to appoint administrators which gave the business 10 working days of breathing space from creditors to secure a potential rescue deal before potentially entering insolvency.

Advisers are still in talks with parties interested in buying the brand and swathes of stores, around two months after a sale process was launched.

On Thursday, a spokeswoman for 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.

“When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company’s ability to trade.

“In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.

“Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for the people, creditors and local communities who care about this business as much as we do.”

On Wednesday, executives from Gordon Brothers and Poundland separately held meetings with Government ministers regarding the future of the retailer.

Prime Minister Andy Burnham said the owners need to find a “practical solution” to keep stores open and save jobs.

Asked what his message was to Poundland’s executives, Mr Burnham said: “Focus on the people in your employment.

“Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions.

“They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it.”

He said the Government was “prepared to find what we can do” to help save the chain.