U.K. Prime Minister Andy Burnham urged talks with Poundland owner Gordon Brothers as the retailer’s sale continues, leaving roughly 11,000 employees’ futures uncertain, The Independent reported Wednesday.
Burnham made the appeal in Antigua during the Commonwealth Heads of Government meeting. He asked Poundland’s executives to prioritize employees and meet Business Secretary Jonathan Reynolds, saying, “There is a solution to be found here.” Burnham also said many stores could remain viable and were important to their communities.
Poundland filed a notice on Oct. 29 that opened a 10-business-day period for an administrator to be appointed, but did not put the retailer into administration. EconoTimes previously explained the filing in its coverage of the government’s request for clarity on the rescue offer. The Independent described roughly 11,000 workers as facing an uncertain future; the figure is a risk estimate, not a confirmed redundancy count.
Gordon Brothers bought Poundland for £1 last year and began a sale process in early September, The Independent reported. The outlet said Xyra proposed a deal with an initial £12.5 million payment and that Gordon Brothers’ advisers were understood to be assessing it. People familiar with the sale told the Press Association that Tesco had discussed buying as many as 150 stores, The Independent reported. The outlet also said Fortress, which owns Poundstretcher, had shown interest in a significant number of stores, potentially up to 250.
The prime minister’s official spokesman said Gordon Brothers should explain why it had not accepted any offer to keep the business operating, while criticizing the owner’s handling of the sale. The Independent said Reynolds was scheduled to meet Gordon Brothers this week; Dearden, a business minister, was expected to confer with Poundland’s chief executive and chief finance officer. Liam Byrne, chair of the House of Commons Business, Innovation, Science and Trade Committee, said the committee had asked Gordon Brothers to attend a hearing next week.