Still ‘opportunity to save jobs’ at Poundland, says Burnham

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The Prime Minister has said there is still an “opportunity to save jobs” at Poundland after a meeting between the Government and the chain’s owners this week as the future of the firm and around 11,000 workers hangs in the balance.

Andy Burnham told the BBC the meeting between Business Secretary Jonathan Reynolds and Gordon Brothers – which bought Poundland for £1 last year – was “reasonably constructive”.

In an interview with BBC News, he said: “We’re in a better place at the end of this week than we were at the end of last week, but it’s not done yet.

“But the Government will be working hard to hold the owners of Poundland to the things that they said yesterday.”

“We will work hard to bring a good resolution to this situation.”

Gordon Brothers, which launched a sale process for the company at the start of September, is under pressure to accept a bid to save the 600-strong chain, which is on the brink of collapse despite receiving solvent takeover offers.

It comes after Poundland filed a notice of intention to appoint administrators last week, which gave the owners 10 days of breathing room from creditors to strike a rescue deal.

However, it is understood Gordon Brothers has lined up advisory firm AlixPartners to oversee a potential insolvency if a takeover deal is not agreed.

On Thursday, the US owner said the high street chain remains “challenged and vulnerable” and it is seeking to “protect as many jobs as possible”.

Earlier this week, executives from Gordon Brothers and Poundland separately held meetings with Government ministers regarding the future of the retailer.

Gordon Brothers has received takeover offers from Irish real estate business Martin Property Group and investment firm Xyra Holdings.

It has also received a number of offers for parts of the business from major retailers, including Tesco, Poundstretcher and B&M, which would ultimately lead to a break-up of the business.

Poundland’s US owners are set to give evidence to MPs in private next week as talks continue over the future of the discount chain.

Earlier this week, Liam Byrne , chairman of Parliament’s Business, Innovation, Science and Trade Committee, called on bosses at Gordon Brothers to face questioning over its stewardship of the business.

Sky News reported earlier on Friday that the US investment firm sought to have an evidence session behind closed doors to avoid it becoming “a show trial”.