Poundland owners to give private evidence to MPs amid collapse fears

The US-based investment firm Gordon Brothers is set to give evidence to a UK parliamentary committee in a private session next week. This follows reports that the discount retailer Poundland is facing a potential collapse, with the future of its 600 stores and approximately 11,000 employees currently uncertain.

Reports indicate that Poundland has been unable to purchase new stock because Gordon Brothers, which purchased the chain for £1 last year, has reportedly frozen access to roughly £50 million in bank funds. The company has filed a notice of intention to appoint administrators, providing a 10-day moratorium from creditors to secure a rescue deal.

Liam Byrne, chairman of the Business, Innovation, Science and Trade Committee, confirmed the private session to allow for the discussion of sensitive commercial information. While Gordon Brothers sought a closed-door meeting to avoid a “show trial,” the committee aims to ensure all steps are being taken to preserve the business as a going concern.

Negotiations are reportedly underway with several potential buyers, including the London-based Xyra Group, which is described as a front-runner in the bidding process. If a sale is not finalized, Poundland may enter administration and face being broken up.