PM Says Poundland Jobs Can Still Be Saved as Sale Talks Run
Around 11,000 jobs at Poundland depend on whether its US owners can find a buyer. Prime Minister Andy Burnham says there is still an "opportunity to save jobs."
Owners due before MPs, in private
Executives of Gordon Brothers are set to give evidence to MPs next week, behind closed doors. Earlier this week Liam Byrne, who chairs Parliament's Business, Innovation, Science and Trade Committee, had called on the bosses to face questions about how they ran the business. According to a report, the firm asked for a closed session so the hearing would not turn into a show trial. Byrne confirmed that the committee will allow a private session at first.
He said the committee has been in daily contact with the owners since asking them to appear. It understands they are negotiating with several credible buyers over a going-concern sale. The committee wants those talks to succeed and wants to understand the highly sensitive commercial detail. Byrne also said: "the decisions you take in the boardroom are felt in homes and on high streets up and down the country."
On Thursday, the owner said the chain remains challenged and vulnerable, and that it is seeking to protect as many jobs as possible.
Two takeover offers, several offers for parts
Gordon Brothers has received takeover offers from the Irish real estate business Martin Property Group and the investment firm Xyra Holdings. Major retailers, including Tesco, Poundstretcher and B&M, have separately made offers for parts of the business. Those would ultimately mean a break-up of the chain.
Administration notice as the fallback
Gordon Brothers started a sale process at the beginning of September. The owners are pressed to take a bid that would save the 600-store chain. It is close to collapse even though it has received solvent takeover offers.
Last week Poundland gave formal notice that it intends to appoint administrators. For the owners that meant 10 days of breathing space from creditors to strike a rescue deal. Gordon Brothers is understood to have lined up AlixPartners to oversee an insolvency should no takeover be agreed.
What the Prime Minister said after the ministers' meeting
Executives from Gordon Brothers and Poundland held separate meetings with government ministers earlier this week. Business Secretary Jonathan Reynolds met Gordon Brothers, which bought Poundland for £1 last year. Burnham told BBC News the meeting was reasonably constructive.
He said the situation looked better at the end of the week than a week before, but that nothing is settled. The government, he added, will work to hold the owners to what they said on Thursday. He also said the government hears that many other retailers are interested and will work toward a good resolution.
Source: The Independent