Struggling retailer Poundland has launched a last-ditch bid for a 10-day lifeline to secure a rescue deal, leaving 600 UK stores and thousands of jobs at risk
Struggling high street favourite Poundland is fighting for its survival after launching a last-ditch bid to buy itself more time. The budget retailer’s original deadline to hammer out a rescue package ran out at the stroke of midnight on Thursday morning.
Bosses at the crisis-hit chain have now confirmed they are filing a fresh legal notice to shield the business from creditors while they try to thrash out a deal. The desperate move comes as chiefs remain locked in crunch talks with three potential buyers looking to snap up the entire company.
If the courts give the green light, the chain will get an extra 10 working days of breathing space to avoid going under, reports the Sun.
Should no buyer step forward in time, the beloved bargain giant faces crashing into administration, putting 600 shops and thousands of livelihoods on the line.
In a statement, the Poundland board said it would lodge a “second NOI with a view to identifying the best available prospects for shareholders, creditors and our people”.
They added: “This extends the current protections over the business for a further 10 working days. Our stores remain open as usual during this period, and we thank our colleagues, suppliers and customers for their incredible and continued support.”
The drama kicked off roughly a fortnight ago when Poundland’s American owners, Gordon Brothers, lodged an initial notice of intention to appoint administrators just 12 months after snapping up the chain for a single quid.
Fears over the retailer’s fate have sparked high-profile interventions, with company founder Steve Smith even penning an emotional plea to King Charles last night in a bid to rescue the brand he started.
Smith has previously sounded the alarm that a staggering 30,000 jobs could be wiped out if the retailer goes bust.
Meanwhile, Prime Minister Andy Burnham last week piled pressure on top brass, demanding they “focus on the people in your employment” and “come up with a practical solution that saves jobs”.
Gordon Brothers has faced fierce backlash after turning down a solvent rescue offer from Martin Property Group that could have kept the whole business intact.
While tiny London-based outfit Xyra Holding Group has thrown its hat into the ring, a failure to find a single buyer could see the chain carved up, with high street rivals B&M and Poundstretcher eyeing up chunks of the business.
A spokesman for Gordon Brothers said: “We support the board’s decision to extend the legal moratorium over the company by a further ten working days.
“This brings additional stability amid an ongoing sale process in the backdrop of increasing cost pressures and a difficult inflationary economic environment.
“With this decision, we are today able to confirm to Poundland employees that funds will be released to allow payroll to be made in full this month, while additional funds continue to be released to support Poundland’s ongoing trading.
“We are in discussions with three parties for a sale of the whole business, and we have also received several offers from established high street retailers for significant parts of the business.”