Poundland future talks, Digi Mart USA News (United Kingdom): Business Secretary Jonathan Reynolds has held crunch talks with US-based owners of Poundland, the retailer on the brink of collapse despite interest from several major supermarket chains.
Poundland filed a notice to appoint administrators last week, putting the future of its roughly 11,000 workers at risk. Gordon Brothers, which 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.
Reynolds received a commitment from Gordon Brothers to prioritise bids that will protect UK workers’ jobs, according to a report in The i Paper. A source close to the Business Secretary said he “has been firm that Gordon Brothers must do everything in their power to protect jobs and provide certainty for workers.”
Andy Burnham said earlier that Poundland’s owners need to find a “practical solution” to keep stores open and save jobs. Asked what his message was to Poundland’s executives, Burnham said: “Focus on the people in your employment.
Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions.”
Speaking while attending the Commonwealth Heads of Government meeting in Antigua, Burnham acknowledged there was a limit to what ministers could do but said the Government was “prepared to find what we can do.” He added: “We believe in this instance there is a solution. There are many viable outlets here.
Other retailers are expressing interest. Get around the table.
Let’s find a solution.”
Advisers are still in talks with parties interested in buying the brand and swathes of stores, around two months after the sale process was launched. Earlier this week, little-known investment group Xyra became the latest to enter the fray, proposing a deal to pay £12.5m up front.
The company has not previously owned a retailer but is backed by Andrew Brode, a veteran businessman who floated RWS on the stock market. Advisers for Poundland’s owners are understood to be assessing the offer.
Tesco has also held talks over proposals to buy up to 150 Poundland stores, sources with knowledge of the process told the Press Association. Poundstretcher owner Fortress has also shown interest in purchasing a significant number of stores, understood to be as many as 250 shops.
Other grocery chains, such as Iceland and Lidl, are also understood to be in the frame to acquire some stores, as are Wilko and The Range owner CDS Superstores and B&M.
Downing Street has been critical of Gordon Brothers’ handling of the sale process. “It appears they’re not acting in the best interests of their loyal UK staff and stores,” the Prime Minister’s official spokesman said.
The spokesman described the situation as “extremely worrying for Poundland staff, their families and communities,” and said the Government was staying close to developments.
“Both the Prime Minister and the Business Secretary have been clear: they want to know what’s happening and Gordon Brothers need to explain why they haven’t accepted any offer to keep the company going,” the spokesman said.
