Key facts
- Three directors appointed on October 15 are expected to resign.
- Dispute is over owner Gordon Brothers' refusal to accept a solvent offer from Martin Property Group.
- Poundland faces increased risk of collapse within days.
- Thousands of jobs are at risk.
- Martin Property Group and Innovest Holdings have made solvent bids.
- Gordon Brothers believes a break-up scenario would ensure repayment of a £30 million loan.
The directors recruited to steer Poundland through its emergency sale process less than two weeks ago are on the brink of resigning, heightening the risk that one of Britain's biggest discount retailers will collapse within days, risking thousands of job losses. Sky News has learnt that a trio of board members appointed on October 15 are expected to quit after a disagreement with Poundland's majority owner, Gordon Brothers. Sources said the dispute, which centres on the shareholder's decision not to accept a solvent offer for the company from Martin Property Group, meant that Poundland was increasingly likely to be broken up after being placed into insolvency proceedings. If it materialised, such a development would threaten thousands of high street jobs, with a filing for administration possible within hours. Sources said the fading hopes of a rescue deal for Poundland could yet be revived if a revised offer for the company was submitted in the next 48 hours. The three directors appointed this month to the Poundland board were Andrew Kirkpatrick, Stephen Welch and Dominic Young. Sources said the trio had expressed disquiet at what appeared to be attempts by Gordon Brothers to manoeuvre Poundland towards an insolvency process. Martin Property Group has made a solvent offer for the company, including preserving a distribution centre. Another Irish company, Innovest Holdings, was also pursuing a solvent bid for Poundland. If it does collapse, Poundland would be among the biggest retailers to go bust for years, employing over 10,000 people and trading from about 600 stores. Gordon Brothers, which only took control of Poundland in the summer of 2025, is understood to believe that a £30 million shareholder loan is more likely to be repaid in full in a break-up scenario. Alvarez & Marsal has been handling the Poundland auction since the summer.