World news and discussion on TalkFuse.
Poundland suppliers urge owner to seek solvent sale and protect creditors
Poundland suppliers say the retailer’s US owner, Gordon Brothers, should explore a solvent sale rather than maximise its return through an administration that could leave them with unpaid debts. The chain’s future is uncertain after it filed a notice of intention to appoint administrators, putting about 12,000 jobs and 2,000 suppliers at risk.
Gordon Brothers, which bought Poundland for £1 last summer, is in talks with at least two potential buyers, including Northern Ireland’s Martin Property Group. It is also understood to favour breaking up the 600-store chain, selling stock and offering stores to other retailers to repay more of a £30m shareholder loan. Suppliers describe substantial exposure: Universal Toiletries estimates its risk at about £1.5m, while toy supplier John Leisure says more than a million products may need to be rehomed.
In short
- Poundland’s future remains uncertain after it filed an administration notice.
- Suppliers fear unpaid debts and stock losses if the chain is broken up.
- Gordon Brothers is discussing buyers while considering asset sales.
Americas Business Government Politics UK World
Read the full article at the source →
Originally published by The Guardian as “Poundland suppliers warn US owner must not maximise its return at their expense”.