Poundland hopeful for last-minute rescue deal to stave off collapse
Summary
Poundland may receive more time to find a buyer after its owners released £10 million in funding, according to sources cited by the BBC. The retailer faces possible administration, while potential buyers have shown interest in acquiring its stores and the company weighs options that could affect its 11,000 employees.Key Facts
- Poundland operates about 600 stores and employs 11,000 people.
- A deadline to secure a buyer was due to expire at midnight, but sources said it could be extended after £10 million was released.
- The retailer’s 10-day moratorium protecting it from creditors was due to expire on Thursday.
- The BBC reported that about £50 million had been frozen by owner Gordon Brothers, limiting Poundland’s ability to restock stores and pay wages and rent.
- Gordon Brothers bought Poundland for £1 last year and has denied claims that it is forcing a piecemeal sale.
- Poundland chief executive Barry Williams told staff that like-for-like sales rose 11.4% and the company made an £18.1 million profit in the year to September.
- Poundstretcher, Tesco and B&M have shown interest in acquiring Poundland stores.
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