Poundland could be pushed into administration within days, putting around 12,000 jobs at risk, according to the Union of Shop, Distributive and Allied Workers.
Usdaw said it understands that owner Gordon Brothers could decide the retailer’s future as early as Tuesday, amid a sale process involving several competing bidders. The union stressed that administration remains a concern, not a confirmed outcome.
One potential route to preserving the business as a going concern involves Martin Property Group, which is backing Poundland boss Barry Williams and former chairman Andy Bond in a proposed acquisition.
Poundland confirmed that its leadership team is working with Martin Property Group and said management’s priority is securing the best outcome for the business, employees and suppliers.
Other parties have also expressed interest in Poundland or parts of its store estate, raising the possibility that the group could ultimately be sold in pieces rather than kept together.
Usdaw national officer Bally Auluk criticised Gordon Brothers for what the union says has been a lack of engagement and questioned why administration should be contemplated after recent trading showed signs of improvement.
Poundland recently reported a return to like-for-like sales growth, following the restructuring programme implemented after Gordon Brothers acquired the business.
A central issue in the negotiations is understood to be a £30 million shareholder loan, with Gordon Brothers seeking repayment as part of any transaction.
If a whole-company sale cannot be agreed on acceptable terms, that debt could become an important factor in determining whether Poundland enters an insolvency process.
Gordon Brothers bought Poundland little more than a year ago and subsequently oversaw a significant programme of store closures and restructuring.
Despite that reduction, Poundland remains one of Britain’s largest discount and general merchandise retailers, with close to 600 stores and around 12,000 employees.
For the business, Tuesday could therefore prove pivotal.
The key question is whether Gordon Brothers accepts a solvent rescue proposal that preserves Poundland as an operating group, or whether the process shifts towards administration and potentially a break-up of the store estate.
