Major UK store close to collapse as directors set to quit

It would be among the biggest retailers to go bust

As per Sky News, the directors appointed to the Poundland board this month are about to resign amid a dispute with the discounter’s majority owner, Gordon Brothers.

The chain, which is headquartered in Walsall, was founded in 1990 by Dave Dodd and Steven Smith.

It originally sold all of its items at the single price of £1.

Thousands of job losses are now at risk following the decision by the directors which were recruited to steer Poundland through its emergency sale process less than two weeks ago.

As a result, one of Britain's biggest discount retailers could collapse within days.

What the dispute means for Poundland as thousands of high street jobs at risk

According to Sky sources, the dispute, centres on the shareholder's decision not to accept a solvent offer for the company from Martin Property Group, meant that Poundland was increasingly likely to be broken up.

Such a development, if it happens, would threaten thousands of high street jobs, with a filing for administration possible within hours of John Healey's inaugural budget as chancellor of the exchequer.

Sources said that the fading hopes of a rescue deal for Poundland could yet be revived, sources told Sky News.

However, that only happens if a revised offer for the company was submitted in the next 48 hours.

Who were the three appointed directors earlier this month?

Appointed to the Poundland board on 15 October were Andrew Kirkpatrick, a former adviser to Steinhoff International when it owned Poundland; Stephen Welch, who is overseeing efforts to revive British-based fintech FNZ; and Dominic Young, a former director of The Spectator's owner when it was sold to the hedge fund tycoon Sir Paul Marshall.

The trio, as Sky News reported, had expressed disquiet at what appeared to be attempts by Gordon Brothers to manoeuvre Poundland towards an insolvency process.

A solvent offer for the company was made by Martin Property Group.

That included preservation of a distribution centre in Andy Burnham's Makerfield constituency.

Meanwhile, The Telegraph reported at the weekend that another Irish company, Innovest Holdings, was also pursuing a solvent bid for Poundland.

However, on Tuesday morning the extent of its funding remained unclear.

What Poundland's potential collapse means for UK and Ireland

Poundland would be among the biggest retailers to go bust for years, if the collapse does happen.

Trading form about 600 stores, it employs over 10,000 people.

The chain remains one of the biggest general merchandise retailers in the UK, even following a store closure programme which was triggered last year by its sale.

Poundland also has a presence in the Irish retail market, taking its total number of outlets to between 550 and 600.