Poundland’s US owner says retailer remains ‘vulnerable’, after talks with ministers

Poundland’s US owner says retailer remains ‘vulnerable’, after talks with ministers Gordon Brothers still in ‘active discussions’ with interested parties and seeks to ‘protect as many jobs as possible’

The US owner of Poundland has said the high street chain remains “challenged and vulnerable” after holding talks with ministers amid government criticism of its handling of the retailer.

Gordon Brothers said in a statement on Thursday morning that it was still in “active discussions” with interested suitors and had been seeking to “protect as many jobs as possible”.

It comes after Poundland filed a notice to appoint administrators last week, putting the future of its roughly 12,000 workers at risk.

Gordon Brothers, which only bought Poundland last year for £1 and launched a sale process for the company at the start of September, is under pressure to accept a bid to save the retailer, which is on the brink of collapse despite receiving solvent takeover offers.

Last week the chain filed a notice of intention to appoint administrators, which gave the business 10 working days of breathing space from creditors to secure a potential rescue deal before potentially entering insolvency.

The board of Poundland has lined up the advisory company AlixPartners to run the process after the owner, the US restructuring specialist Gordon Brothers, ceased providing funding.

On Wednesday, executives from Gordon Brothers and Poundland separately held meetings with government ministers regarding the future of the retailer.

Advisers are still in talks with parties interested in buying the brand and a large number of stores, about two months after a sale process was launched.

On Thursday, a spokesperson for Gordon Brothers said: “We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value.

“Work continues at pace, engaging in active discussions on offers with interested parties.

“When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company’s ability to trade.”

They added: “In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.

“Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for the people, creditors and local communities who care about this business as much as we do.”