Investment company Gordon Brothers has informed the UK Government that it is engaged in discussions to preserve Poundland outlets and employment as the discount chain moves closer to administration, reported Sky News.
Poundland’s directors lodged a notice of intention to appoint administrators last week, securing a ten working-day moratorium against action from creditors.
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Up to 10,500 retail jobs across the UK and Ireland, alongside supply chain roles, are currently at risk.
In a formal submission to the government, Gordon Brothers defended its management of the retail chain, having taken controlling ownership of the business in 2025.
UK Business Secretary Jonathan Reynolds confirmed that his department is monitoring the situation.
Meanwhile, Minister for the Future of Work Kate Dearden is scheduled to hold a meeting with Poundland managing director Barry Williams and finance chief Shaun Wills.
A mandatory investigation will be carried out by the Insolvency Service if administrators are formally appointed.
In a letter sent to David Bickerton, chief business adviser at the UK Department for Business, Innovation, Science and Technology (DBIST), Gordon Brothers’ European operations head Mark Newton-Jones stated that the company injected £85m ($114.7m) of supplementary financing after obtaining control.
Newton-Jones was quoted as saying that Gordon Brothers had placed “significant working capital at risk to narrow a £70m loss and return to a baseline EBITDA positive position earlier this year”.
The investment company has come under political scrutiny from the UK Prime Minister, Reynolds, and senior Reform figures following its decision to reject a solvent acquisition offer from Northern Ireland-based Martin Property Group.
The takeover proposal was reportedly turned down because Martin Property Group would not completely clear a £30m shareholder loan upon the completion of the transaction.
Martin Property Group continues to maintain an interest in securing a solvent rescue agreement.
Poundland’s former parent company and existing minority shareholder, Pepco Group, had offered to postpone the repayment of its £7.5m portion of that loan.
Newton-Jones stated that offloading groups of retail locations to rival businesses represents the most viable route to preserve jobs.
Expressions of interest have reportedly been lodged by competing retailers, including B&M, Lidl, and Tesco.
Alvarez & Marsal is currently advising Gordon Brothers on the sale process, with AlixPartners on standby to act as administrator if required.
