Gordon Brothers is weighing buyer interest as Poundland moves through a creditor-protection period ending Nov. 12, a deadline that leaves the future of about 11,000 workers uncertain, The Independent reported Thursday.
Poundland filed a notice of intention to appoint administrators on Oct. 29, starting a 10-business-day window to seek a potential rescue. The notice did not put the retailer into administration.
Gordon Brothers said it was reviewing proposals from interested buyers and aimed to preserve jobs and business value. It said Poundland was already financially distressed when it took ownership last year and needed major restructuring, operational changes and funding to continue trading. The owner said it provided that support and that discussions on proposals were ongoing.
Gordon Brothers said the business remains vulnerable to a downturn despite its and management’s turnaround efforts. The owner bought Poundland for £1 last year and began a sale process in early September, The Independent reported. Earlier EconoTimes coverage said bids included proposals for Poundland as a whole or viable parts of its business.
The Independent reported that Poundland had received solvent takeover offers as Gordon Brothers faced pressure to accept a bid. The owner said it sought a sale outcome that accounts for employees, creditors and local communities, describing them as stakeholders in the business.
Executives from Gordon Brothers and Poundland met government ministers separately on Wednesday. Prime Minister Andy Burnham called on the owners to focus on employees, meet ministers and develop a workable plan for stores and jobs. He said many locations could remain viable and mattered to local communities.
Burnham said the government was prepared to consider what help it could provide. He also said a meeting with the Business Secretary was being arranged, but gave no date. The notice period runs through Nov. 12 as the owner pursues a rescue.