Poundland secures more time to find buyer as rescue talks continue
The retailer has an extra 10 working days of breathing space from creditors to secure a potential rescue deal.
Poundland has given itself more time to thrash out a rescue deal for the business as it battles to stave off the threat of insolvency.
Court documents show the retailer has applied for a second notice of intention (NOI) to appoint administrators after the first one expired on Thursday.
This gives the retailer an extra 10 working days of breathing space from creditors to secure a potential rescue deal.
Bosses said funding had been agreed so shops can stay open and trading during this period.
Gordon Brothers, Poundland’s owner, has faced mounting political pressure to protect the chain’s future and MPs have accused them of deliberately cutting off funds and pushing it to the brink of insolvency.
Prime Minister Andy Burnham has stepped in to call for executives to work with the Government to find a solution that saves shops and jobs.
About 11,000 jobs and 600 shops in the UK remain at risk.
Gordon Brothers said it was in talks with three potential buyers for the whole business.
A spokesman said: “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.
“While our preference remains a sale of the whole company, we are taking due care to ensure that any successful offer can provide the funds required to acquire the business and see it through to sustainable cash generation.”
Poundland’s board said extending the notice period to appoint administrators was “with a view to identifying the best available prospects for shareholders, creditors and our people”.
“Our stores remain open as usual during this period and we thank our colleagues, suppliers and customers for their incredible and continued support,” they said.
Poundland’s bosses held a private meeting with Parliament’s business committee on Wednesday.
Its chairman, Liam Byrne, said Gordon Brothers had “taken millions of pounds out of Poundland when the business was on a knife edge” and there were “concerning signs it’s been strangled of access to its own funds”.
Gordon Brothers bought Poundland for £1 last year and launched a sale process for the company at the start of September.
The spokesman said it had provided £85 million in new financing to Poundland, “stepping in when no-one else was willing to finance the company” and supporting efforts to turnaround its performance.
“Had we not, the company would have collapsed into insolvency in August 2025,” he said.
“Our efforts have continuously focused on the company’s value and its people, not prioritising one over the other.”
Advisers have been in talks with parties interested in buying the brand or parts of the business such as swathes of shops.
It has held talks with potential bidders including Tesco over proposals to buy up to 150 stores, and other chains such as Iceland and Lidl.
Investment firm Xyra Holdings has emerged as a potential buyer for the whole business while Irish firm Martin Property Group is believed to remain interested.
Gordon Brothers previously rejected a takeover offer from Martin Property Group but management named the firm as the preferred bidder last month.
If a rescue deal is not secured, then it is expected that administrators would be appointed, with corporate advisory firm AlixPartners understood to be lined up.