Andy Burnham, the prime minister, has urged the owner of Poundland to find a practical solution that saves jobs and stores. Gordon Brothers, which owns the discount retailer, says it believes it has buyers for about half of its 600 stores, while the moratorium that followed its notice of intention to appoint administrators runs down.
Poundland filed a notice of intention to appoint administrators last week, according to City AM. The chain employs about 12,000 people across 600 stores. Gordon Brothers, a US investment firm, bought the retailer last year for £1 and began a sale process at the start of September, Brit Brief reported. L’Express Franchise has followed the case since October, including questions over the rescue bids and the business secretary’s warning.
What the prime minister said
Burnham was speaking at the Commonwealth Heads of Government meeting in Antigua, per Brit Brief. He said many of the stores are viable and called for a solution that keeps them open. A Downing Street spokesperson said Gordon Brothers needed to explain why it had not accepted any offer, and that it appeared not to be acting in the best interests of its staff.
The business secretary, Jonathan Reynolds, was due to meet Gordon Brothers on Wednesday, and the future of work minister, Kate Dearden, was to speak to Poundland’s managing director and finance officer.
The offers and the interested retailers
City AM reported that Martin Property Group’s solvent bid was turned down because it offered no up-front payment against a £30 million loan inherited from PepCo, and that Innovest’s solvent bid was not being considered because it lacked proof of funds.
Xyra Group Holdings, backed by the businessman Andrew Brode, has offered £12.5 million up front. Brit Brief said Tesco held talks over up to 150 stores and Fortress, the Poundstretcher owner, is interested in as many as 250. Lidl, Iceland, B&M and The Range were also named as interested retailers.
Two staff figures
City AM puts the workforce at 12,000 and Brit Brief at roughly 11,000. Neither report says which basis it uses, so this report gives both.
Parliament and the nationalisation question
Brit Brief reported that the business minister, Lord Leong, declined to rule out nationalisation, and that the Department for Business, Innovation, Science and Trade later said he had “misspoken”. Liam Byrne, who chairs the Commons business committee, has asked Gordon Brothers to appear before it. The reports do not set out what Gordon Brothers has said in reply.
What happens next
City AM reported that the moratorium lapses next Thursday. The reports name no date for a decision on the bids beyond that deadline, and none of them says a preferred bidder has been chosen. Gordon Brothers has not announced a buyer, and Retail Gazette carried the prime minister’s call on 5 November.
City AM said Burnham criticised the US investment firm for not accepting any offer so far. City AM named the two Poundland executives as Barry Williams and Shaun Wills, the managing director and finance officer, and said Kate Dearden was to speak to both of them.
