Poundland has secured another 10 days to try and find a rescue deal before the chain collapses into administration.
The budget retailer originally filed a notice of intention to appoint administrators at the end of October, giving it 10 working days to find a rescue deal. This was due to expire at midnight tonight, however CityAM reports that Poundland has filed a second notice of administration, giving its owners Gordon Brothers more time to find a buyer.
The breathing space comes as Gordon Brothers faces political pressure to find a rescue deal for the business and save more than 11,000 jobs. The American investment firm was subjected to two hours of questioning by MPs at a closed-door meeting of the Business & Trade Select committee on 11 November. MPs are said to have expressed concerns that Gordon Brothers had taken “millions out of the business” despite it being on a “knife’s edge”.
The comments from the committee’s chair, Liam Byrne MP, after the meeting suggest it did little to ease those concerns. He said: “After extensive cross-examination this afternoon, I’m deeply concerned that Gordon Brothers behaviour may have jeopardised thousands of jobs on Britain’s high street.
“Gordon Brothers refused to say it will prioritise saving jobs over and above its own financial returns.”
However, he added that the prospect of a good outcome was higher “thanks to the focus on the business of the last week.”
The committee heard from Poundland’s management team, led by managing director Barry Williams, who has been battling to save the business.
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