Poundland faces possible collapse after its US owner, Gordon Brothers, cut off a vital funding supply, according to BBC Business. The retailer's bosses have filed a notice of intention to appoint administrators, giving the business 10 days to find a rescue deal.
Prime minister Andy Burnham said the government is "ready to support" Poundland staff. He called for answers on why an offer to buy the business from Irish firm Martin Property Group (MPG) was rejected. "We want to see jobs protected," Burnham said. "If there was a potential owner to avoid this that hasn't been accepted, then the Business Secretary and I want to know why that is the case."
Managing director Barry Williams told the chain's 12,000 staff in a message, seen by the BBC, that Gordon Brothers had restricted access to funds the business would normally expect to use under its loan agreement. He said the company's sales are strong. He called the situation "unexpected, unwanted and wholly avoidable." He described the MPG offer as a "fully funded, ready to go bid that would have kept the business intact."
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