business
MPs urge government to protect Poundland from predatory capitalism
UK MPs call on government to protect Poundland and other high street stores from predatory capitalism.
Key points
- Poundland filed a notice of intention to appoint administrators at the High Court last Thursday.
- Gordon Brothers is believed to be unwilling to accept Martin Property's offer of about £15m, only half payable immediately.
- Minister Kate Dearden said the government cannot comment on individual bids but is pressing Gordon Brothers to accept its responsibilities.
Why it matters. The chance of Poundland avoiding mass store closures and job losses is shrinking by the day, because suppliers have held back on deliveries and hurt its ability to trade.
Poundland filed a notice of intention to appoint administrators at the High Court last Thursday, leaving the jobs of its 12,000 staff uncertain. Owner Gordon Brothers stopped funding the chain, and it is believed to be unwilling to accept Martin Property's offer of about £15m, only half payable immediately. The offer falls short of repaying a £30m shareholder loan, while Gordon Brothers said in a letter reported by Sky News that it had supplied £85m of extra financing since buying the chain for £1 last year.
Latest updates
MPs urge government to protect Poundland from predatory capitalism
MPs have called on the government to protect Poundland from what they describe as predatory capitalism. The discount retailer and its jobs are at risk after its US owner failed to accept buyout offers. The MPs' intervention puts pressure on ministers to respond to the situation. No government response has been reported so far. The outcome could affect the company's workforce and its customers across the UK.