Government holds crunch talks over future of Poundland

Business Secretary Jonathan Reynolds has held crunch talks with US-based owners of Poundland, the retailer on the brink of collapse despite interest from several major supermarket chains. Poundland filed a notice to appoint administrators last week, putting the future of its roughly 11,000 workers at risk. Gordon Brothers, which only bought Poundland last year for £1 and launched a sale process for the company at the start of September, is under pressure to accept a bid to save the retailer. Reynolds received a commitment from the Gordon Brothers to prioritise bids that will protect UK workers’ jobs, The i Paper understands. A source close to the Business Secretary said he “has been firm that Gordon Brothers must do everything in their power to protect jobs and provide certainty for workers”. Shorts “He is pleased to have secured this commitment from Gordon Brothers in the meeting and will continue to hold the company to account and closely monitor developments,” they added. It comes after Andy Burnham earlier said Poundland’s owners need to find a “practical solution” to keep stores open and save jobs. Asked what his message was to Poundland’s executives, Burnham said: “Focus on the people in your employment. “Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions. “They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it.” He said the Government was “prepared to find what we can do” to help save the chain. Speaking to reporters while attending the Commonwealth Heads of Government meeting in Antigua, Burnham acknowledged there was a limit to what ministers could do but he suggested there were ways forward for the firm. “There’s always a limit, but we’re prepared to to find what we can do,” he said. “We believe in this instance there is a solution. There are many viable outlets here. Other retailers are expressing interest. Get around the table. Let’s find a solution.” Jonathan Reynolds held talks with Poundland on Wednesday (Photo: Wiktor Szymanowicz/Future Publishing/Getty) Advisers are still in talks with parties interested in buying the brand and swathes of stores, around two months after a sale process was launched. Earlier this week, little-known investment group Xyra became the latest to enter the fray to buy Poundland, proposing a deal to pay £12.5m up front. The company has not previously owned a retailer but is backed by Andrew Brode, a veteran businessman who floated RWS on the stock market. It is understood that advisers for Poundland’s owners are assessing the offer. Tesco also held talks over proposals to buy up to 150 Poundland stores, sources with knowledge of the process told the Press Association. Poundstretcher owner Fortress also showed its interest in purchasing a significant number of stores, understood to be as many as 250 shops. It is understood that other grocery chains, such as Iceland and Lidl, are also in the frame to acquire some stores, as well as Wilko and The Range owner CDS Superstores and B&M. Downing Street has been critical of Gordon Brothers’ handling of the sale process. “It appears they’re not acting in the best interests of their loyal UK staff and stores,” the Prime Minister’s official spokesman said. It is an “extremely worrying situation for Poundland staff, their families and communities” and the Government was staying close to the situation, the spokesman said. “Both the Prime Minister and the Business Secretary have been clear: they want to know what’s happening and Gordon Brothers need to explain why they haven’t accepted any offer to keep the company going.”