Poundland has filed a notice of intent to appoint administrators, putting 12,000 jobs at risk across its 640 stores. The UK discount retailer, bought by Gordon Brothers for less than £1, is struggling to secure a rescue deal. The filing, made in the High Court, halts creditor claims for 10 business days. Alix Partners has been lined up as administrators if no deal is reached.
Gordon Brothers demanded £30mn from bidders to cover a shareholder loan inherited from previous owner Pepco, deterring suitors. The firm rejected a bid from Martin Property Group, preferred by management, and recently restricted a key credit line. Managing director Barry Williams called the situation “unexpected, unwanted and wholly avoidable.” Business secretary Jonathan Reynolds expressed concern, stating owners may need to account for the administration if unnecessary.
The collapse would impact Andy Burnham’s constituency of Makerfield, home to a Poundland distribution centre. Founded in 1990 by Dave Dodd and Steven Smith, Poundland struggled with competition from B&M, Home Bargains, Aldi, and Lidl, rising costs, and theft. It recorded an £85.2mn loss on £1.5bn revenue in the year to September 2025.
However, recent trading improved, with like-for-like sales up 6.7% in September. The failure follows the 2023 collapse of Wilko, which also cost 12,000 jobs.
Source: Financial Times Companies · Summarized by HeadlinesBriefing