Poundland Owner Files Administration Notice, 12,000 Jobs at Risk
Gordon Brothers filed a notice of intention to appoint administrators to Poundland at the high court on Thursday. AlixPartners is lined up to run the process. Up to 12,000 jobs are at risk, and the shop workers' union Usdaw has asked the owners to reconsider.
The notice protects Poundland from creditors' demands for 10 days while a solution is sought. The board said it was filed "in order to bring stability". It added that, "despite enormous efforts", no acceptable offer for the whole business had been found.
A rejected bid
Gordon Brothers had earlier turned down a management-backed rescue bid. Martin Property Group, a Northern Irish family-owned company, was the only bidder interested in buying the entire chain and working with existing management under chief executive Barry Williams. Gordon Brothers is understood to believe a breakup would raise more than the Martin offer, which was worth less than the £30m in debts it took on when it bought the chain.
Poundland, which has 600 stores including Dealz outlets in Ireland, was bought by Gordon Brothers for a nominal £1 from the European retail group Pepco in June 2025. In August the new owner hired Alvarez & Marsal to oversee a sale at a reported price of £30m, which fuelled fears of a breakup despite improved trading.
The chain was founded with one store in Burton upon Trent in 1990. Last year it closed about 200 of its then 800 UK stores in a restructuring. The threat of administration leaves thousands of shop workers facing uncertainty in the run-up to Christmas.
Williams wrote to staff this week calling the rejection of the Martin bid "unexpected, unwanted and wholly avoidable".
Bally Auluk, national officer of Usdaw, said it had been "an incredibly distressing week for Poundland staff" and urged Gordon Brothers to prioritise "a unified buyer who will protect the livelihoods" of more than 11,000 people.
Who might take stores
Poundstretcher, The Range and B&M have reportedly shown interest in taking on some stores. Five parties were initially interested, including the US company Fortress, which is thought to want fewer than half of the stores. CDS, the owner of The Range, and B&M are understood to be considering bids for at least some of them.
The Poundland board said the latest sale process drew offers from several established retailers that together cover a significant part of the business and "offer the best available prospects for shareholders, creditors and to preserve jobs".
Source: The Guardian