Poundland owner secures two extra weeks to ensure retail chain’s survival

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US investment firm Gordon Brothers is ‘taking due care’ to consider if one of three bidders has enough fundsBusiness live – latest updatesPoundland’s owner has said it is “taking…

US investment firm Gordon Brothers is ‘taking due care’ to consider if one of three bidders has enough funds

Poundland’s owner has said it is “taking due care” to consider if one of three bidders had enough funds to ensure its survival after the troubled budget retail chain secured two more weeks to find a deal.

The management of Poundland, which employs approximately 12,000 people and operates 600 stores in the UK and Ireland, won approval from the high court for an extension of legal protection from creditors on Thursday morning.

Poundland’s board said it had sought the extra time “with a view to identifying the best available prospects for shareholders, creditors and our people”.

It added: “Our stores remain open as usual during this period and we thank our colleagues, suppliers and customers for their incredible and continued support.”

A spokesperson for Gordon Brothers said on Thursday: “We support the board’s decision to extend the legal moratorium over the company by a further 10 working days. This brings additional stability amid an ongoing sale process in the backdrop of increasing cost pressures and a difficult inflationary economic environment.

“With this decision, we are today able to confirm to Poundland employees that funds will be released to allow payroll to be made in full this month, while additional funds continue to be released to support Poundland’s ongoing trading.

“We are in discussions with three parties for a sale of the whole business, and we have also received several offers from established high street retailers for significant parts of the business.

“While our preference remains a sale of the whole company, we are taking due care to ensure that any successful offer can provide the funds required to acquire the business and see it through to sustainable cash generation. We, the board, and all involved are working to secure a credible plan that delivers certainty, preserves value and protects as many jobs as possible.”

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