Beloved discount chain Poundland to appoint administrators

The beloved Black Country founded discount retailer Poundland has filed to appoint administrators - days after speculation began about its future.

Owners Gordon Brothers had been in talks with various parties to try to find a buyer for the Walsall-headquartered business and earlier this week it emerged that a solvent offer that would have kept Poundland in tact had been rejected.

Bosses at Poundland told the Express & Star of their disappointment that a bid by Irish real estate company Martin Property Group had failed - fearing any other option could spell the end for the Poundland brand.

Trade union Usdaw yesterday urged the government to do all it could to help protect the thousands of workers employed by Poundland but it has now been confirmed that a notice of intention to appoint administrators has been filed.

Barry Williams, managing director of Poundland, said: “Over the past two months, initially prompted by interest from several parties, we have been working on a formal sale process for Poundland.

“Despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole.

“The process has however attracted several established retail operators who have made formal offers, collectively these cover a significant part of the business, and we believe offer the best available prospects for shareholders, creditors and to preserve jobs.

“We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment. We thank all stakeholders, and in particular our people for their support during this period.

“In order to bring stability, we have today filed a Notice Of Intention (NOI) to appoint representatives of AlixPartners as Administrators to the business.

“The filing of the NOI creates an immediate 10 working day legal moratorium during which we will be working closely with our advisors to identify and deliver the best possible outcome.

“Our stores remain open as normal and we thank our staff, suppliers and customers for their continued support.”

American investment firm Gordon Brothers – which only bought Poundland last year for £1 – launched a sale process for the retailer at the start of September.

Poundland currently runs around 600 stores across the UK, including many across the West Midlands and Shropshire, and employs around 11,000 workers.

A worker, who did not wish to be named, said staff had just been informed of the devastating news at the company’s head office in Walsall where around 200 people are based.