Poundland faces bankruptcy despite sales surge after owner rejects rescue bid
The Times reported that on 1 November Poundland posted a sharp sales surge but still faced potential bankruptcy after its U. S. owner Gordon Brothers rejected a rescue bid, endangering roughly 12,000 jobs. Earlier, founder Steve Smith warned that the retailer’s collapse could affect up to 30,000 jobs. The prime minister subsequently asked why the rescue offer had been turned down as administrators were being appointed.
Poundland filed a notice of intention to appoint administrators, giving it a short window to secure a rescue deal. Business Secretary Jonathan Reynolds said the government was reviewing options and seeking information on Gordon Brothers’ handling of the chain. The chief executive said the owner had limited access to a loan facility, prompting legal advice. Three directors appointed to turn around the retailer resigned amid a dispute over a possible sale and fears of administration.
