Bosses say no offers accepted for all businesses ‘despite huge efforts’
High street discount retailer Poundland plans to appoint administrators, putting the livelihoods of around 12,000 staff at risk.
Court documents reveal that the company gave notice of its intention to appoint administrators on Thursday afternoon, giving the business 10 days of protection from creditors while it looks for a potential rescue deal.
Advisers are still negotiating with interested parties to acquire the brand and many stores.
Poundland’s managing director, Barry Williams, said: “Despite our huge efforts, we are unable to identify acceptable offers for the business.
“But the process has attracted some established retail operators who have given official offers. Together this covers a significant part of the business, and we believe it offers the best prospects available to shareholders, creditors and to preserve jobs.
“We recognize that the sale process creates uncertainty and is particularly so when it comes against the challenging UK economic environment.”
He added that the retailer would work closely with advisers to “understand and deliver the best possible outcome”.
It is understood that corporate advisory firm AlixPartners is set to be appointed as administrator.
Poundland has confirmed that all stores remain open and continue to trade as usual throughout the insolvency process. It follows owner Gordon Brothers rejecting a takeover bid from Irish real estate firm Martin Property Group, which management had identified as a preferred bidder earlier this month.
Gordon Brothers – which acquired Poundland just last year for £1 – started the sale process for the retailer in early September.
Poundland operates approximately 600 stores across the UK.
Wilko and The Range owner of CDS Superstores, Poundstretcher owner of Benteng and TG Jones owner of Modella are all believed to be interested in acquiring part of the Poundland business.
However, the agreement is unlikely to cover all Poundland stores and some jobs may be affected.
Gordon Brothers has overseen a significant restructuring program at Poundland which has seen the company close more than 100 stores over the past year to strengthen its finances.