Poundland bidder tells administrator it remains keen on rescue deal

The Northern Irish company attempting to stage a solvent rescue of Poundland has told the discount retailer's administrator-in-waiting that it remains keen on a deal which could save more than 10,000 jobs.

Sky News has learnt that Martin Property Group (MPG) contacted AlixPartners on Thursday to express a continued interest in a takeover of Poundland - despite the retailer being just days from collapse.

Sources said that Londonderry-based MPG had reconfirmed two separate proposals which would see all or part of a £30m shareholder loan, controlled by Poundland's current owner, Gordon Brothers, repaid.

The first would see the full £30m loan repaid upon maturity, while the second offer would involve half of it being repaid on an accelerated basis.

People close to the process said that MPG's reconfirmed offer was supported by a number of leading Poundland suppliers, who face losing substantial sums of money if the chain falls into administration just weeks before the crucial festive trading period.

The alternative would be a break-up of the business, with several hundred of Poundland's roughly 600 stores likely to be acquired by rival retailers such as B&M, Iceland and Aldi.

However, that could still leave thousands of the chain's roughly 10,500-strong workforce being made redundant just weeks before Christmas - with the situation now drawing close scrutiny from government ministers and officials.

MPG's bid includes preserving all of Poundland's existing stores and workers, according to insiders.

It can also be revealed that Pepco Group, the Warsaw-listed discount retailer which sold Poundland to Gordon Brothers last year, still owns a 25% share of the shareholder loan worth £7.5m at par.

Insiders said that Pepco had offered to defer its right to repayment of the £7.5m for a number of years if a solvent sale of the retailer could be achieved.

Pepco, which declined to comment, also continues to hold a minority equity stake in Poundland.

Interest from Andy Burnham, the prime minister, in the Poundland crisis and widening criticism of Gordon Brothers' conduct is likely to pile pressure on the US-based investor to consider waiving part or all of its rights over the loan.

Mr Burnham, whose Makerfield constituency includes a Poundland distribution centre, said on Thursday: "This is a deeply worrying time for Poundland staff and their families.

"We want to see jobs protected. If there was a potential owner to avoid this that hasn't been accepted, then the business secretary and I want to know why that is the case."

Retail executives now predict that a collapse of Poundland would become the most politically contentious retail insolvency since BHS ceased trading in 2016.

Even after a store closure programme triggered by its sale last year, Poundland remains one of the biggest general merchandise retailers in the UK.

Gordon Brothers filed a notice of intention to appoint AlixPartners as administrator on Thursday, which buys Poundland 10 working days of breathing space from its creditors.

That period could still be truncated, meaning Poundland formally collapses into administration more quickly, if the prospects of a rescue deal were to evaporate altogether.

Insiders have questioned why Poundland has been placed on a path to insolvency after its management team began to deliver evidence of a turnaround in its trading performance.

On Thursday, Alvarez & Marsal (A&M), the firm which has been running an auction of Poundland, issued a statement attributed to Barry Williams, Poundland's managing director, saying that "despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole".

Within hours, the statement had been reissued but this time attributed to the board of the company.

Mr Williams and his finance chief, Shaun Wills, are said to have insisted on ensuring that staff would be paid this week, despite having their efforts to secure a solvent deal in conjunction with MPG thwarted by Gordon Brothers.

Earlier this week, a trio of restructuring heavyweights resigned as Poundland directors within a fortnight of their appointment in protest at Gordon Brothers' efforts to steer the chain towards insolvency.

Gordon Brothers' conduct has prompted the Department for Business, Innovation, Science and Trade to make preliminary fact-finding enquiries about the escalating crisis.

Sky News reported this week that a number of big suppliers had begun taking steps to curtail deliveries to the discounter amid suggestions they will not be paid as scheduled this week.

Gordon Brothers is understood to have restricted access to the company's finances, effectively preventing its management team from making routine payments.

Neither Martin Property Group nor AlixPartners could be reached for comment on Friday morning.

(c) Sky News 2026: Poundland bidder tells administrator it remains keen on rescue deal