'Incredibly distressing' Poundland, which has stores across Lancashire, is on brink of administration
Poundland has stores in Preston, Chorley, and across Lancashire. Martin Property Group, which own’s Preston’s Fishergate Centre as part of its portfolio, have now been rejected as buyers under a takeover proposal.
High street giant Poundland, which has more than 20 stores in Lancashire including Preston, Chorley, Morecambe, Burnley , Blackpool, is on the brink of administration, putting around 12,000 jobs at risk.
The retailer 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.
The group also owns Preston’s Fishergate Centre, which houses a Poundland store.
Usdaw National Officer Bally Auluk said: “It has been an incredibly distressing week for Poundland staff who have had to watch from the sidelines as a multi-billion pound company jeopardises their livelihoods as it tries to extract £30m from a business it bought for £1.
“Poundland’s managing director Barry Williams has reluctantly filed a notice of intention, to give the business time to find a rescue deal and prevent Gordon Brothers from breaking up the business. We are urging Gordon Brothers to reconsider and to prioritise a unified buyer who will protect the livelihoods of 11,000 people.”
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.
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.