Poundland owners to give evidence in private Commons hearing

Gordon Brothers, the U.S. investor that bought the Poundland discount chain last June, has been granted permission to appear before the Commons business committee in a private session. Mark Newton-Jones, the firm’s European head, will be questioned on the future of the retailer, which employs up to 12,000 people across more than 600 stores.

Newton-Jones asked that the hearing be held behind closed doors, warning that a public “show trial” could jeopardise the chances of a successful sale. Labour MP Liam Byrne, who chairs the all-party select committee, initially scheduled the session for Nov 11 but later agreed to the request.

“Since we asked Gordon Brothers to appear before Parliament, we’ve been in daily contact and we understand they are now in active talks with several credible buyers about selling Poundland as a going concern. We want those talks to succeed and we want to understand what I know will be highly sensitive commercial information in detail. Given the assurances that Gordon Brothers are now focused on a sale of the active business that will save jobs and stores, we will permit them to appear before the committee in private session in the first instance and issue a statement of our findings thereafter.”

The hearing comes after Gordon Brothers filed a notice of intention to appoint administrators in the High Court, a move that followed the rejection of a takeover offer from Martin Property Group. The firm is also in talks with Xyra Group Holdings, and restructuring adviser AlixPartners stands by to manage insolvency if a sale does not materialise.

Gordon Brothers said it is pursuing all avenues to protect jobs and preserve value, but acknowledged that the business remains challenged and vulnerable to future trading downturns. The firm was contacted for comment.