Thousands of Poundland jobs at risk as administrators to be appointed - what happens next?
Staff have been given a memo by the retailer’s managing director.
A high street retailer on the brink of collapse will be appointing administrators, it has been confirmed.
Poundland is set to file a notice of intention to appoint administrators, which will give the business 10 working days of breathing space from creditors to secure a potential rescue deal.
It is understood Poundland has not yet filed the notice, but is preparing to do so imminently.
Poundland managing director Barry Williams told staff in a memo that the situation is “unexpected, unwanted and wholly avoidable”.
The discount chain is due to enter insolvency after owner Gordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder earlier this month.
Gordon Brothers – which only bought Poundland last year for £1 – launched a sale process for the retailer at the start of September.
Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella are all understood to be interested in buying parts of the Poundland business.
It is understood the retailer has appointed advisers at AlixPartners to oversee the insolvency process and assess offers to buy all or parts of the business.
Poundland currently runs around 600 stores across the UK, including shops in Commercial Road, Portsmouth, West Street in Fareham, London Road in Waterlooville and Greywell Shopping Centre, Havant.
Gordon Brothers had overseen a major turnaround programme at Poundland that included closing more than 100 shops over the past year in an effort to shore up its finances.