MPs accuse Poundland owner of extracting millions as retailer seeks court extension

The management of Poundland, which employs about 12,000 people across 600 UK and Ireland stores, will ask a high court on Thursday for a two-week extension of its legal protection from creditors while it pursues a rescue deal. The extension follows a recent £10 million cash injection from the chain’s owner, Gordon Brothers, intended to fund new stock and keep trading.

During a private session with the Commons Business Select Committee, Mark Newton-Jones, European head of Gordon Brothers, was questioned for nearly two hours. Committee chair Liam Byrne said he was “deeply concerned that Gordon Brothers’ behaviour may have jeopardised thousands of jobs on Britain’s high streets”. Byrne added that the firm had taken “millions out of Poundland when the business was on a ‘knife-edge’” over the past 17 months and that the retailer now faces restricted access to its own funds during the crucial pre-Christmas period.

Poundland’s management, led by Barry Williams, told the committee that sales were up year on year but cash reserves were limited. Gordon Brothers described the retailer as “challenged and vulnerable to any potential downturn in future trading”. The owner is reportedly in talks with three potential bidders, though the offers are said to be below the £30 million debt incurred by shareholders when Gordon Brothers acquired the chain for a nominal £1 from Pepco in June 2025. Pepco still holds £7.5 million of that debt and hopes to be repaid.

Potential suitors include Martin Property Group, which supports a management-backed rescue bid, and Xyra Group, a finance firm that has proposed an upfront payment of about £12 million and a total offer near £30 million. Gordon Brothers has not responded to requests for comment.