Key facts
- Poundland is expected to appoint administrators soon.
- The retailer employs 12,000 staff.
- Gordon Brothers bought Poundland for £1 last summer.
- A bid from Martin Property Group was rejected.
- The business secretary has contacted Gordon Brothers for information.
Poundland's directors are reportedly preparing to appoint administrators, signaling a potential collapse for the discount retailer. Gordon Brothers, the US investment firm that acquired the 600-store chain for £1 last summer, is understood to be close to filing a notice of intention to appoint administrators. This move would protect Poundland from creditors for 10 days while a solution is sought. The business secretary, Jonathan Reynolds, has written to Gordon Brothers to ascertain the latest situation amid fears for the 12,000 jobs at the company. Poundland's management had backed a bid from Northern Ireland's Martin Property Group, but this was rejected by Gordon Brothers, which is reportedly seeking to recoup £30 million in debts.