Poundland faces collapse, putting 12,000 jobs at risk
Poundland has filed a notice of intention to appoint administrators, putting the future of the 36-year-old chain in doubt. Its possible collapse threatens up to 12,000 jobs and could leave shoppers with fewer low-cost options, while its US owner, Gordon Brothers, faces questions over its handling of the business.
The notice gives Poundland 10 days’ protection from creditor action as a solution is sought for its 600 stores, including Dealz outlets in Ireland. Gordon Brothers bought the retailer for £1 in June last year; a rescue offer from Martin Property Group, reportedly worth about £15m, was rejected, while the chain has about £30m in shareholder loans and a further asset-backed loan of roughly £90m. Inflation and competition have squeezed its single-price model, and suppliers are holding back deliveries.
In short
- Poundland has entered a 10-day period to seek a rescue.
- The chain’s 600 stores and up to 12,000 jobs are at risk.
- A reported £15m bid from Martin Property Group was rejected.
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Originally published by The Guardian as “Poundland in peril: how rampant inflation and price wars left £1 stores exposed”.