Key facts
- Poundland is on course for an £18 million profit, its owner Gordon Brothers said, while calling the retailer vulnerable.
- Gordon Brothers filed a notice of intention to appoint administrators, giving the chain ten days to find a buyer.
- Sales rose 8.4% in the three weeks to October 18, per a supplier note seen by The Times.
- Gordon Brothers rejected a Martin Property Group offer after talks collapsed over a £30 million loan.
- Business Secretary Jonathan Reynolds demanded an explanation from Gordon Brothers over the rejected offer.
- Founder Steve Smith estimated 30,000 jobs could be lost, against reports of 12,000 at risk.
Poundland is on course for an £18 million profit even as its owner pushes for a sale and describes the discount retailer as vulnerable, according to an exclusive report.
Gordon Brothers, which bought the chain for a nominal £1 in June 2025, has filed a notice of intention to appoint administrators. The owner has shut more than 100 stores and two warehouses in South Yorkshire and the Midlands since the takeover, and the company has ten days to find a buyer.
Talks with real estate firm Martin Property Group collapsed after Gordon Brothers insisted the buyer shoulder a £30 million loan inherited with the chain. Poundland said it received formal offers from several established retail operators covering a significant part of the business, suggesting the chain would instead be broken up and sold off.
A note sent to suppliers and seen by The Times showed sales up 8.4% in the three weeks to October 18, with sales, margins and gross profits described as running comfortably ahead of expectations. As many as 12,000 jobs were reported at risk.
Business Secretary Jonathan Reynolds said he wanted to know why a potential owner had not been accepted, and founder Steve Smith accused the owners of being greedy, estimating 30,000 jobs could be lost including at suppliers.