Poundland supplier urges 'thorough' state probe into owner's conduct

A major Poundland supplier has urged the government to "thoroughly investigate" the conduct of its majority owner as the discount chain teeters on the brink of collapse.

Speaking to Sky News, Andy Kay, chief operating officer of John Leisure, which supplies footballs and other leisure products to Poundland, said a probe of Gordon Brothers' behaviour during the retailer's sale process was necessary.

Poundland, which employs roughly 10.500 people, has received a solvent takeover bid from Northern Ireland-based Martin Property Group, which was rejected by Gordon Brothers because it failed to repay in full and immediately a £30m shareholder loan on completion of a deal.

On Wednesday morning, ITV News reported that Xyra Group Holdings (XGH), a little-known investment firm, had also tabled an offer which would keep Poundland out of administration.

Discussions are continuing with the bidders, although the likelihood of a deal being achieved without the company being put through an insolvency process diminishes with each week that passes.

Mr Kay demanded that Gordon Brothers "explains why a credible, fully-funded rescue of Poundland as a going concern cannot be achieved, particularly when the alternative could have devastating consequences for employees and suppliers".

That question is at the centre of escalating political interest in the crisis, with Poundland's bosses due to meet business minister Kate Dearden on Wednesday, and business secretary Jonathan Reynolds set to hold talks with Gordon Brothers executives later in the week.

MPs on the business select committee have also summoned Gordon Brothers to attend a hearing next week.

A notice of intention to appoint administrators, which was filed late last week, is due to expire next Thursday, although there is an option to extend it if a rescue deal remains a viable option.

"With Martin Property Group and now Xyra Group Holdings both reportedly seeking to acquire Poundland as a whole business, Gordon Brothers has some very serious questions to answer if neither transaction can be made to work," Mr Kay said.

"If two credible, properly funded buyers are prepared to rescue Poundland, Gordon Brothers must explain precisely what is preventing a solvent outcome and why breaking up the business would deliver a better result."

Sky News revealed on Tuesday that Gordon Brothers had written to the government to defend its 16-month stewardship of the retailer, claiming it had backed it with £85m of funding.

Mr Kay added: "One of the biggest unanswered questions is what happens to the millions of pounds of stock supplied to Poundland, who ultimately benefits from its value in an administration or break-up, and what losses suppliers are expected to absorb.

"The question isn't simply how many people Poundland employs, but whether anyone has properly calculated the economic damage that could follow its break-up.

"Suppliers have their own employees, financial commitments and businesses to protect.

"Those consequences deserve to be part of the decision, not an afterthought."

John Leisure is part of German-based John GmbH, which is marking its centenary this year.

Mr Kay stopped short of calling on ministers to rescue Poundland with taxpayers' money but urged them to "consider what assistance, if any, may be appropriate".

"Any decision involving taxpayers' money must be transparent, properly scrutinised and in the public interest," he added.

Gordon Brothers repeatedly failed to respond to messages seeking comment.

(c) Sky News 2026: Poundland supplier urges 'thorough' state probe into owner's conduct