Poundland: 12,000 jobs could be at risk as retailer files to appoint administrators

Boss says no offer was received for whole business ‘despite enormous efforts’

High street discount retailer Poundland plans to appoint administrators, putting the livelihoods of approximately 12,000 employees at risk.

Court documents reveal that the company lodged a notice of intention to appoint administrators on Thursday afternoon, granting the business a 10-working-day period of protection from creditors while it seeks a potential rescue deal.

Advisers remain in discussions with parties interested in acquiring the brand and a substantial number of its stores.

Poundland managing director Barry Williams said: “Despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole.

“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.”

He added that the retailer would be working closely alongside its advisers to “identify and deliver the best possible outcome”.

It is understood that corporate advisory firm AlixPartners is set to be appointed as administrators.

Poundland has emphasised that all of its stores remain open and are continuing to trade as normal throughout the insolvency process. This follows owner Gordon Brothers turning down a takeover bid from Irish real estate firm Martin Property Group, which management had identified as their preferred bidder earlier this month.

Gordon Brothers – which acquired Poundland just last year for £1 – initiated a sale process for the retailer at the beginning of September.

Poundland operates approximately 600 stores throughout the UK.

Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella are all believed to be interested in acquiring portions of the Poundland business.

Nevertheless, agreements are unlikely to include all Poundland stores and some jobs are likely to be affected.

Gordon Brothers had been overseeing a significant restructuring programme at Poundland which had already led to the company closing more than 100 shops over the past year in a bid to strengthen its finances.