Poundland hopeful for last-minute rescue deal to avoid collapse

Poundland and its 11,000 staff are hoping a last‑minute rescue will buy time before a collapse, sources close to the issue told the BBC. The discount retailer faces a midnight deadline to find a buyer, but a £10m cash release could extend the timetable.

The chain has been moving towards administration after its US owners, Gordon Brothers, blocked access to funds in its bank accounts. Gordon Brothers bought Poundland for £1 last year and are accused of limiting cash needed for stock, wages and rent ahead of the Christmas period. The investment firm has denied the allegations.

A parliamentary committee of MPs will question Gordon Brothers on Wednesday after accusations that the firm intends to profit by selling the 600 stores and inventory piecemeal. A recent takeover bid was rejected, prompting calls for answers from politicians including Prime Minister Andy Burnham.

The BBC understands about £50m was frozen by Gordon Brothers, leaving the retailer unable to replenish shelves across its 600 outlets. Sources close to the matter told the BBC on Tuesday that the £10m release, while "small in the scale of things", may at least postpone the collapse while a longer‑term solution is pursued.