Poundland in rescue talks as owners seek buyer
The leadership team is attempting a buyout, but a union has warned the retailer could fall into administration instead.
Poundland has confirmed it is in talks with possible buyers as it pursues a rescue deal.
However, the shopworkers’ union warned that if no other buyers are found, the retailer could end up in administration, putting thousands of jobs at risk. Usdaw said that would be “a disaster for our members”.
Poundland has around 600 stores across the UK and Ireland and employs 12,000 people.
The chain has been under pressure for several years because of factors including rising costs and competition.
Last summer, the retailer was sold for £1 by its former owner Pepco to US investment firm Gordon Brothers.
A spokesman said the current owners are now looking for buyers, while Poundland management is trying to arrange a buyout.
Poundland managing director Barry Williams, together with the company’s leadership team and Andy Bond, the current chairman of Pepco, has been working with Irish property firm Martin Property Group on a management buyout.
The spokesman said Martin Property Group is the management team’s “preferred partner”, but added that the team will “work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that's already taking shape,” he added.
But Bally Auluk, a national officer at Usdaw, said there are “deep concerns that the business could go into administration” if the buyout does not succeed.
“We are aware that a management buy-out has been attempted and we are told that their offers are being turned down,” he added.