Key facts
- Gordon Brothers said Poundland remains "challenged and vulnerable" to a downturn in future trading.
- The retailer filed a notice of intention to appoint administrators last week, with about 12,000 staff and 2,000 suppliers affected.
- Advisory firm AlixPartners is running the process after Gordon Brothers stopped funding the chain.
- Martin Property Group offered about £7.5M upfront plus the same again in deferred payments over two years.
- Xyra Group Holdings offered £12.5M to rescue the business, according to ITV News.
- Prime Minister Andy Burnham urged the owner to find a "practical solution" that saves jobs and stores.
Gordon Brothers, the US restructuring specialist that owns Poundland, said on November 5 that the discount chain remains "challenged and vulnerable" to a downturn in trading, after holding talks with UK government ministers. The company said it was still in "active discussions" with interested suitors and was seeking to protect as many jobs as possible.
The retailer filed a notice of intention to appoint administrators last week, a step that gives it 10 working days of protection from creditors while it seeks a rescue deal. Poundland has about 12,000 staff and around 2,000 suppliers. The board has appointed advisory firm AlixPartners to run the process after Gordon Brothers stopped providing funding.
Advisers are still in talks with parties interested in buying the brand and a large number of stores, roughly two months after the sale process began. Northern Ireland's Martin Property Group has offered about £7.5 million upfront and the same again in deferred payments over two years, which would cover about half of a £30 million shareholder loan. Xyra Group Holdings, a London-based investment company, has offered £12.5 million, according to ITV News, which the Guardian cited. Irish company Innovest Holdings is also among the interested parties.
Prime Minister Andy Burnham said the owner needed to find a "practical solution" to keep stores open and save jobs. "Focus on the people in your employment," he said. "Come up with a practical solution that saves jobs and saves those stores."