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Major British supermarket chain under threat as directors meet to discuss options

Poundland directors meet to decide company’s fate ahead of midnight deadline as jobs and stores hang in the balance

The directors of Poundland are meeting to decide its future before the midnight deadline. Managing director Barry Williams stated there are “no guarantees” jobs will be saved. After meeting MPs’ business and trade committee, he expressed gratitude to staff for their efforts.

Williams mentioned the board would discuss potential administration.

The looming deadline affects 600 stores and 10,500 jobs, plus additional roles in the supply chain. Williams, with UK’s Gordon Brothers boss, shared details with MPs. Committee chair Liam Byrne expressed concern over conflicting accounts from Gordon Brothers.

Retail concerns

Byrne accused Gordon Brothers of prioritising financial returns over jobs. He claimed the firm took £20m from Poundland amid its struggles. Byrne urged Gordon Brothers to allow access to funds to keep Poundland operational. A public evidence session is planned post-risk period.

Poundland directors could seek a 10-day extension if it’s beneficial for creditors. Without sufficient cash, they must proceed with administration. Martin Property Group’s bid to buy Poundland has been rejected by Gordon Brothers. Xyra Group Holdings is considered a leading bidder with its offer to repay more of a £30m loan.

If administration occurs, store break-ups could see sales to other retailers. Reports indicate Gordon Brothers recently released £10m for supplier payments. Gordon Brothers’ UK head, Mark Newton-Jones, defended their actions, highlighting £85m in support since acquiring Poundland.

Newton-Jones cited challenges like inflation and shoplifting impacting Poundland. A statement reaffirmed efforts to maximise job retention and preserve business value, seeking the best outcome for everyone involved.

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