Poundland unable to buy new stock as fears over collapse grow

Poundland cannot buy new stock after its owner, Gordon Brothers, blocked access to about £50m in its bank accounts, leaving its 600 shops running short. The retailer has until Thursday to secure a rescue deal before creditor protection expires, putting 11,000 jobs at risk and raising the prospect of administration or a break-up.

A source says London-based Xyra Group is making significant progress with a bid, and an extension to the deadline appears increasingly likely if a solvent deal is possible. Poundland’s boss reported an £18.1m profit for the year to September and an 11.4% rise in like-for-like sales during a recent week, though the accounts are unaudited; Gordon Brothers says the business remains vulnerable. MPs are due to question the owner about its rescue efforts, while retailers including Poundstretcher, Tesco and B&M have shown interest in buying individual stores.