Poundland jobs threat as retailer seeks administrators

Nation.Cymru staff/agencies

Poundland’s Welsh stores are under threat after the discount chain moved towards administration, putting around 12,000 jobs at risk across the UK.

A recent count based on September store-location data listed 28 Welsh branches. Poundland said all its shops remain open and trading as normal.

The company filed the notice on Thursday afternoon, giving it 10 working days of protection from creditors while advisers seek a rescue deal.

Talks are continuing with potential buyers interested in taking over the brand and substantial parts of its store network, but offers are unlikely to cover every branch.

Poundland managing director Barry Williams said efforts to find an acceptable buyer for the whole business had been unsuccessful.

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

“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.”

Mr Williams said the retailer would work with its advisers to “identify and deliver the best possible outcome”.

Corporate advisory firm AlixPartners is understood to be in line to act as administrator.

The filing follows owner Gordon Brothers’ rejection of a takeover offer from Irish real estate firm Martin Property Group, which Poundland’s management had named as its preferred bidder earlier this month.

Gordon Brothers bought the retailer for £1 last year and launched a sale process at the beginning of September.

Poundland currently operates around 600 stores across the UK. More than 100 shops have already closed over the past year as part of a turnaround programme intended to improve its finances.

Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella are understood to be interested in buying parts of the business.

Any deals are unlikely to include every store, leaving some branches and jobs at risk.