Poundland files for administration as owner rejects rescue bid

Poundland has filed a notice of intention to appoint administrators, a move that provides a 10-working-day moratorium from creditor action while the retailer explores a rescue or sale. The decision follows the rejection by majority owner Gordon Brothers of a takeover proposal from Martin Property Group, which management had identified as the preferred bidder.

The dispute centers on a £30 million shareholder loan. While Martin Property Group proposed a plan to preserve the business as a going concern, Gordon Brothers reportedly determined that breaking up the company and selling its stores in parts would better facilitate the repayment of the debt. Potential buyers for various parts of the business include B&M, Lidl, Poundstretcher, and CDS Superstores.

The potential insolvency poses a significant risk to the UK high street, with approximately 12,000 jobs and 600 stores at stake. Managing director Barry Williams described the situation as “unexpected, unwanted and wholly avoidable,” noting that the owner had limited the chain’s access to necessary funding. Advisory firm AlixPartners has been lined up to oversee the process.