Poundland owner holds talks amid looming retailer collapse

Business Secretary Jonathan Reynolds met the US‑based owners of discount chain Poundland as officials rush to avoid the retailer's collapse. The chain, which Gordon Brothers bought for £1 in June last year, is said to be on the verge of insolvency after turning down a takeover that could have saved more than 12,000 jobs. A meeting originally slated for Thursday was brought forward amid intensifying rescue efforts.

Gordon Brothers told reporters it is "pursuing all avenues through the sales process" and warned that Poundland has endured years of instability, describing it as "remains challenged and vulnerable". The firm added that it is "engaging in active discussions on offers with interested parties" and noted that "When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company's ability to trade". Both Reynolds and Prime Minister Andy Burnham have asked why a future‑saving deal has not yet materialised.

According to a source close to the business secretary, Reynolds "has been firm that Gordon Brothers must do everything in their power to protect jobs and provide certainty for workers" and was pleased to secure that commitment in the meeting. MPs have summoned Gordon Brothers for questioning on Wednesday 11 November, with Liam Byrne, chair of Parliament's business committee, saying: "Every report suggests Poundland is a viable, profitable business with a future ahead of it and without good reason to let it crash and burn - and then to break it up and sell it off piece by piece. We are asking Gordon Brothers to appear before Parliament to explain themselves and tell us just what it is that's preventing them from accepting the fully-funded deal on the table to save more than 12,000 jobs."

Business Minister Kate Dearden and union representatives later met Poundland managing director Barry Williams, who told the BBC that the retailer is profitable and sales are growing. He said: "We're back in profit and it has a bright future ahead of it if it's allowed to deliver that". Poundland has filed a notice of intention to appoint administrators, which shields it from creditors until next Thursday.