Poundland collapse: 12,000 jobs at risk as bid rejected

MPs question Poundland’s owner over chain’s survival prospects

Committee chair Liam Byrne has argued that Poundland should be able to survive, describing it as "a viable, profitable business with a future ahead of it..."

The retailer's financial difficulties have put around 12,000 jobs at risk, with its owner rejecting a rescue offer that could have protected many workers. 

It remains unclear whether Gordon Brothers will sell Poundland as a single business or break it up and sell its shops and assets separately.

The company, which acquired the chain for £1 last June, says it is "pursuing all avenues through the sales process". 

It has also acknowledged that Poundland "remains challenged and vulnerable" following years of instability.

Government pushes for a buyer who will keep Poundland trading

Business Secretary Jonathan Reynolds met Gordon Brothers on Wednesday, bringing the discussions forward from Thursday as the search for a buyer became more urgent, according to BBC News.

A source close to Reynolds said he had been clear that the owner must do everything possible to protect jobs and provide certainty for staff. 

Gordon Brothers has since agreed to prioritise offers that would safeguard workers and keep stores open, the source added.

The lack of progress towards a deal has also prompted criticism from Reynolds and Prime Minister Andy Burnham, both of whom have questioned why an agreement to secure the retailer's future has not yet been reached.