Poundland could collapse into administration within days, putting around 12,000 jobs at risk, according to retail trade union Usdaw.
The union has warned that owner Gordon Brothers could make a decision on the future of the discount chain as early as today, despite ongoing rescue talks with prospective buyers.
Usdaw said it has “deep concerns” that Poundland could be pushed into administration, claiming that attempts to secure a management buyout have faced resistance.
Usdaw national officer Bally Auluk said the union had repeatedly sought urgent talks with Gordon Brothers but had received no meaningful engagement over the future of the retailer and its workforce.
He warned that sources within the business had suggested a decision could be made imminently, adding that administration would be “a disaster for our members”.
Auluk also questioned why Poundland was facing the prospect of administration after recently reporting a return to like-for-like sales growth.
The warning comes as Gordon Brothers presses ahead with the sale of Poundland, little more than a year after acquiring the retailer from Pepco Group for £1.
As Retail Gazette reported yesterday, Irish property investor Martin Property Group has emerged as the preferred backer of a management-led rescue deal involving Poundland managing director Barry Williams and former Asda boss Andy Bond.
The proposed deal would aim to keep the retailer trading outside an insolvency process, safeguarding its remaining stores and workforce.
However, Gordon Brothers is reportedly seeking full repayment of a £30m shareholder loan as part of any transaction, potentially complicating negotiations.
Other interested parties are understood to include Modella Capital, Fortress Investment Group and Henderson Property Group, while Aldi and Lidl have also been linked to potential acquisitions of individual stores.
Poundland confirmed that its leadership team has been working with Martin Property Group on a management buyout, but insisted it remains open to any proposal that delivers the best outcome for the business, employees and suppliers.
A source close to Poundland also disputed suggestions that the management-backed bid had been rejected, insisting Martin Property Group remains involved in the sale process.
The discounter now operates approximately 600 stores and has been attempting to revive its fortunes by returning to simpler pricing, strengthening its value proposition and expanding its Pep&Co clothing offer.
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