Poundland owner extracted millions when chain was on ‘knife-edge’, MPs say
Retailer’s management to seek two-week extension of legal protection from creditors in high court MPs have accused the owner of Poundland of extracting millions of pounds from the budget retailer when it was on a “knife-edge” as it seeks extra time to secure a rescue deal. The management of Poundland, which employs 12,000 people and operates 600 stores in the UK and Ireland, will seek a two-week…
The management of Poundland, a budget retailer with 600 stores across the UK and Ireland, is seeking a two-week extension of legal protection from creditors in a high court. This comes after the retailer's owner, Gordon Brothers, was accused by MPs of extracting millions from the struggling business during its "knife-edge" situation.
Poundland, which employs 12,000 people, filed a notice of intention to appoint administrators two weeks ago, and the legal protection is currently in place to prevent creditors from demanding payment. The extension request aims to secure a rescue deal that would protect jobs and suppliers. Gordon Brothers has already released an additional £10m to help Poundland secure new stock and continue trading, but the company still faces challenges, including potential downturns in future trading.
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