Second buyer makes rescue bid for Poundland as retailer faces collapse

A second buyer, Xyra Group, has made a rescue bid for struggling discount retailer Poundland as the company faces the threat of collapse, placing thousands of jobs at risk. London-based Xyra has offered to pay off half of Poundland's outstanding debts immediately, a crucial hurdle in ongoing takeover talks. The remaining debt would be deferred.

Meanwhile, US-based owners Gordon Brothers have already dismissed a rival bid from an Irish property group, which would have saved Poundland's 12,000 employees. Sources reveal that Xyra is offering to clear £12.5m of the £30m loan Poundland owes, following a meeting where Business Secretary Jonathan Reynolds urged Gordon Brothers to safeguard jobs.

Gordon Brothers, who took Poundland for £1 in June, pledged to prioritize any takeover that protects its shops and workers. They will continue actively discussing offers with interested parties. Xyra's proposal surpasses that of Martin Property Group, who were previously rejected by Gordon Brothers. However, doubts persist regarding Xyra's credibility, as there is limited evidence to prove they possess the necessary funds and can serve as reliable long-term owners.

Andrew Brode's appointment to Xyra's board, a representative from AI solutions provider RWS, hints at their reliability. Despite this, little public information exists about Xyra, leaving questions about their financial capability. Gordon Brothers emphasized their commitment to protecting as many jobs as possible and preserving value.

Both Reynolds and Prime Minister Burnham have questioned the delay in securing a deal for Poundland's future. With Xyra's offer to take over the entire business, it remains uncertain whether the company will stay intact or be dismantled. Suppliers to Poundland warn that the retailer's collapse could leave not only its 12,000 staff but potentially up to 30,000 jobs endangered.