businessBREAKING
Ministers Hold Urgent Talks With Poundland as Rescue Deadline Looms
Business Minister Kate Dearden is to meet senior Poundland executives later this week as a rescue deadline nears.
Key points
- Poundland has been given until Thursday to find a rescue deal, putting up to 12,000 staff at risk.
- Gordon Brothers said it is evaluating interest for the whole business and offers for significant viable parts of it.
- The company has 600 stores in the UK and Ireland, and sales were up 11.2% on last year, according to Steven Smith.
Why it matters. If no rescue deal is found by Thursday, up to 12,000 jobs and hundreds of stores could be affected, and the government may have limited power to intervene.
Business Minister Kate Dearden will meet senior Poundland executives later this week, as the chain has until Thursday to find a rescue deal for up to 12,000 staff. Gordon Brothers, the US firm that bought Poundland from Pepco last year for £1, has stopped funding it and rejected a takeover offer from Martin Property Group. Government sources conceded there is limited scope to intervene, and the meeting will be predominantly a fact-finding one.
Latest updates
Ministers Hold Urgent Talks With Poundland as Rescue Deadline Looms
The government is holding urgent talks with Poundland bosses over the future of the discount retailer. The BBC understands that Business Minister Kate Dearden will meet senior Poundland executives later this week. Poundland has been given until Thursday to secure a rescue deal, and up to 12,000 staff are at risk. Former employee Steve Smith, who left the Walsall-based business in 2006, said he was 'really surprised' to learn of the administration filing, given that sales were up 11% on the previous year. He said he had tried to contact the owners, Gordon Brothers. Amid growing recriminations over the company's ownership, ministers are seeking to understand the options for keeping the business trading.