Poundland's owners have started a process that could lead to administration, and the discount chain has 10 days to find a rescue deal, according to the BBC. Managing director Barry Williams told staff that the US owner, Gordon Brothers, had cut off a key supply of funding, even though sales are strong.
Prime Minister Andy Burnham said the government is "ready to support" Poundland staff. He called for answers on why an offer from Martin Property Group (MPG) to buy the business was not accepted. "We want to see jobs protected," Burnham said. "If there was a potential owner to avoid this that hasn't been accepted, then the Business Secretary and I want to know why that is the case." Business Secretary Jonathan Reynolds said he was "very much concerned" about the uncertainty.
Williams said in a memo, seen by the BBC, that the MPG offer was a "fully funded, ready to go bid" that would have kept the business intact. Three independent directors appointed earlier this month to oversee a sale resigned after disagreeing with Gordon Brothers' decision.
The BBC reports that Gordon Brothers wants to break up Poundland. A Gordon Brothers insider said this would let creditors recover more money. The insider also said current employees may be able