Poundland’s future hangs in balance as administration deadline looms

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The future of Poundland remains uncertain as last-ditch efforts continue to save the struggling retailer.

Managing director Barry Williams said a board meeting was being held to decide the company’s future.

The low-cost chain filed a notice of intention to appoint administrators at the end of October.

This gave the business 10 days to secure a potential rescue deal, which will expire at midnight.

Asked if the company was going into administration on Thursday, Mr Williams told reporters: “We’re going to go and have a board meeting now to have those conversations.”

After a meeting with MPs on the Commons Business , Innovation, Science and Trade Committee, Mr Williams thanked the chain’s staff, whose jobs are at risk.

He told Sky News he was “representing 11,000 colleagues” as well as thousands in the broader supply chain and “maybe even the retail industry” at the meeting.

Asked whether he could guarantee the security of jobs and keep the business going in the run-up to Christmas, he said there were “no guarantees at this point”.

It is understood that Poundland’s owners Gordon Brothers have enabled the release of around £10 million of funding for items such as paying staff, taxes and suppliers of stock.

Any extension to Wednesday’s deadline could mean the prospect of a deal that would satisfy the company’s creditors remained on the table.

If not, it is expected that administrators would be appointed, with corporate advisory firm AlixPartners understood to be lined up.

This would pose a threat to the future of Poundland’s roughly 600 shops and 11,000 employees.

Business, Innovation, Science and Trade Committee chairman Liam Byrne said: “After extensive cross-examination this afternoon, I’m deeply concerned that Gordon Brothers’ behaviour may have jeopardised thousands of jobs on Britain’s high streets.

“Over the last 17 months, they have taken millions out of Poundland when the business was on a knife edge.

“Now Poundland appears to be on the rebound, there’s concerning signs it’s been strangled of access to its own funds in what should be its busiest trading period in the run-up to Christmas.