Poundland Owner Moves Toward Administration, Putting Up to 12,000 Jobs at Risk
Gordon Brothers is preparing to appoint administrators at the discount chain after rejecting a management-backed rescue bid, leaving thousands of workers facing uncertainty before Christmas.
By Claire Darwish ·
The owner of Poundland has said it is preparing to appoint administrators, a move that puts as many as 12,000 jobs at risk across the retailer's operations in the UK and Ireland.
Gordon Brothers is filing a notice of intention to appoint administrators at the high court, and the advisory firm AlixPartners has been lined up to run the process. The court is expected to approve the notice on Thursday. The legal step shields Poundland from creditor demands for 10 days while a solution is sought.
The discount chain operates 600 stores, including Dealz outlets in Ireland. Gordon Brothers bought it for a nominal £1 from the European retail group Pepco in June 2025.
Gordon Brothers had earlier turned down a rescue bid backed by management. Martin Property Group, a family-owned company from Northern Ireland, was the only bidder interested in buying the whole chain and working with the existing management team led by chief executive Barry Williams. Its offer was worth less than the £30m in debts that Gordon Brothers took on when it acquired the business.
Gordon Brothers is understood to believe a breakup of Poundland would raise more money than the Martin offer. In a letter to staff this week, Williams described the rejection of the bid as "unexpected, unwanted and wholly avoidable". Andy Bond, the former Asda boss who ran Poundland from 2016, when Pepco bought the chain, and later worked directly for the parent company, took part in the negotiations alongside Williams.
The prospect of administration leaves thousands of shop workers uncertain about their futures in the run-up to Christmas. Some relief may come from rival cut-price retailers: Poundstretcher, The Range and B&M have reportedly expressed interest in taking on some Poundland stores, which could preserve some jobs.
Gordon Brothers hired the advisory company Alvarez & Marsal in August to oversee a sale of the business at a reported price of £30m. That fuelled fears of a breakup even though trading had improved. Five parties were initially interested, including the US company Fortress, which owns Poundstretcher and is thought to want fewer than half of Poundland's stores to add to its existing chain. CDS, the owner of The Range, and B&M are also understood to be considering bids for at least some stores.
Source: The Guardian
