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Downing Street Says Poundland Owner Gordon Brothers Is Not Acting in Staff's Interests
Downing Street says Poundland owner Gordon Brothers is not acting in the best interests of staff and stores.
Key points
- Poundland filed a notice to appoint administrators on Thursday last week.
- Martin Property Group's solvent bid was turned down because it did not offer up-front payment for a £30m loan.
- Business secretary Jonathan Reynolds is due to meet Gordon Brothers later this week.
Why it matters. If the retailer collapses, its 12,000 jobs and 600 stores could be split among several buyers, with rivals including Lidl and Tesco hoping to take some of the stores.
Downing Street said on Tuesday that Poundland's 600 stores and 12,000 staff are at risk as the discount retailer hurtles towards collapse. Gordon Brothers must explain why it rejected solvent offers, including a Martin Property Group bid that lacked up-front payment for a £30m loan. The firm says it has found buyers for about half the stores, sources said, before the moratorium lapses next Thursday.
Latest updates
Downing Street Says Poundland Owner Gordon Brothers Is Not Acting in Staff's Interests
Downing Street said Poundland's owner, Gordon Brothers, is "not acting in the best interests" of the discount retailer's staff and stores. The criticism came as Poundland approaches a possible collapse, according to City AM's reporting. Gordon Brothers, a restructuring and investment firm, owns the chain. The government's comments put pressure on the owner over the protection of jobs and store networks. No further details of government action were reported in the initial coverage.