Poundland owner seeks private MP session 'to avoid show trial'

Poundland's owner is seeking to give evidence to MPs in private next week as it seeks to avoid an evidence session on the discount retailer's fate turning into "a show trial".

Sky News has learnt that Gordon Brothers is in talks with officials working for Liam Byrne, the chair of the business, innovation, science and trade select committee following a demand that its top European executive appears before parliament next Wednesday to discuss Poundland's fate.

Sources said that Gordon Brothers had provided the committee with assurances that it is committed to progressing a solvent sale of Poundland, which could otherwise collapse into administration as soon as next week.

AlixPartners, the restructuring firm, is on standby to handle Poundland's insolvency - a move which would put 10,500 jobs at risk.

One insider said the committee was minded to agree to Gordon Brothers' request to hear evidence in private and avoid any potential disruption to Poundland's sale process.

In a letter sent on Wednesday, Mr Byrne invited the former Mothercare chief Mark Newton-Jones, who now runs Gordon Brothers' European operations, to give evidence.

"I write on behalf of the House of Commons Business, Innovation, Science and Trade Committee to formally request your attendance at an evidence session on Wednesday 11 November concerning the ongoing developments relating to Poundland," Mr Byrne wrote.

"Given the scale of the potential job losses and the impact on high streets across the United Kingdom, this is a matter of significant public interest.

"As Poundland's owner, it is important that the committee has the opportunity to hear directly from you and to understand your strategy for ensuring the company's future."

Mr Byrne said he was seeking a reply by 5pm on Thursday.

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Sky News revealed this week that Gordon Brothers had enlisted advice from one of London's top lobbying firms as it seeks to navigate the intensifying political headwinds over its stewardship of Poundland.

The US-based investor, which only bought Poundland last year, is facing demands to explain why a solvent offer for the chain from Martin Property Group was rejected.

In a statement on Thursday, Gordon Brothers said: "We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value.

"Work continues at pace, engaging in active discussions on offers with interested parties.

"We recognise the Poundland business has faced several years of instability.

"When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company's ability to trade.

"In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.

"Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for the people, creditors and local communities who care about this business as much as we do."

Multiple sources have cast doubt on those claims, with Gordon Brothers having rejected a fully funded, solvent offer for the business.

Another party, Xyra Group Holdings, is reported to be interested but has yet to secure funding for a deal.

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The notice of intention to appoint AlixPartners as administrator gives Poundland breathing space from creditors until next Thursday.

It could, however, be extended.

Insiders have challenged the need for Poundland to enter any form of insolvency process because of the company's current cash position and trading performance.

Gordon Brothers is understood to have frozen the chain's access to its asset-based lending facility and prevented board executives from accessing the company's bank account, although it was unclear on Friday whether that still remained the case.

Gordon Brothers has been contacted for comment.

(c) Sky News 2026: Poundland owner seeks private MP session 'to avoid show trial'