Overview
- Poundland filed a notice to appoint administrators at the end of October and is operating under a 10-day moratorium that must be resolved this week to avoid formal administration.
- Gordon Brothers has unlocked about £10m from Poundland’s balance sheet to pay staff, suppliers and taxes but has not signed a sale and continues to demand repayment for a £22.5m loan it inherited from PepCo.
- Little-known Xyra Group has emerged as the frontrunner with a £12.5m offer while Innovest has re-entered with proof of funds and Martin Property Group and major retailers remain interested in parts of the business.
- MPs privately questioned Gordon Brothers and accused the owner of restricting Poundland’s access to funds, a line of inquiry that increased pressure on the firm to enable a rescue that preserves jobs.
- If no solvent buyer is found administrators such as AlixPartners are understood to be lined up, a result that could lead to store break-ups and put roughly 11,000–12,000 jobs at risk this Christmas.