Poundland owners break silence and vow to protect ‘as many jobs as possible’

The owner of Poundland has broken its silence following criticism from the UK Government over its handling of the sale of the retailer.

Gordon Brothers has been slammed for rejecting a bid that would have saved the entire retailer, as opposed to carving up its 600 shops and risking thousands of jobs in the process. 

The discount retailer, whose over 10,000- strong workforce has been left in the lurch as it waits to call in administrators, was bought by the closely guarded US investment firm for less than £1 last November.

A spokesman at Gordon Brothers today insisted it was looking at ‘all avenues’ in order to protect ‘as many jobs as possible.’

In the first remarks on the looming collapse, they said the business ‘has faced several years of instability.’

They added: ‘When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company’s ability to trade.

‘In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.’

Hitting back at claims the company is just looking to profit, he said:  ‘Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for the people, creditors and local communities who care about this business as much as we do.’

The statement said: ‘We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value.

‘Work continues at pace, engaging in active discussions on offers with interested parties.’

 It comes after the business select committee demanded answers from the firm before the end of the day on Thursday.

And Andy Burnham said the government was ‘prepared to find what we can do’ to help save the chain.

Poundland’s failure would mark one of the biggest High Street collapses since Debenhams closed its doors in 2021 with the loss of 12,000 jobs. 

A Poundland distribution centre employing 270 staff in Makerfield – in Burnham’s constituency in Greater Manchester – is also at risk.

Asked what his message was to Poundland owners and executives, the Prime Minister said: ‘Focus on the people in your employment.

‘Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions.

‘They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it.’

Business Secretary Jonathan Reynolds is set to meet Gordon Brothers amid Government criticism of their handling of the retailer this week. 

Business minister Kate Dearden is also due to hold talks with Poundland’s chief executive and chief finance officer.

Tesco has held talks over proposals to buy up to 150 Poundland stores while Poundstretcher owner Fortress also showed its interest in purchasing as many as 250 shops.