Poundland owner turns to Thames Water creditors' lobbying firm as political heat rises

The embattled owner of Poundland has parachuted in a team of top London lobbyists as it faces intensifying political pressure over the discount retailer's fate.

Sky News understands that Gordon Brothers this week appointed Hanbury Strategy to advise it amid urgent talks aimed at averting Poundland's collapse - which would put 10,500 jobs at risk just weeks before Christmas.

Gordon Brothers, which only bought Poundland last year, is facing demands to explain why a solvent offer for the chain from Martin Property Group was rejected.

The Business, Innovation, Science and Trade select committee has summoned Mark Newton-Jones, the former Mothercare boss who runs Gordon Brothers in Europe to give evidence next Wednesday.

The invitation is said to be under discussion, although Whitehall sources said a response had yet to be received.

Gordon Brothers' decision to hire Hanbury reflects the intensity of the scrutiny it is now confronted by, having met with Jonathan Reynolds, the business secretary

Hanbury, whose partners include former Westminster special advisors, is working with the London & Valley Water consortium which is trying to stitch together a rescue deal for Britain's biggest water utility.

It was also involved in the auction of The Daily Telegraph, which culminated this year following protracted government intervention.

Hanbury declined to comment on its work for Gordon Brothers.

Earlier this week, Sky News revealed details of a letter sent by Gordon Brothers to government officials in which it defended its stewardship of Poundland.

A statement released by Gordon Brothers overnight repeated many of those claims, saying: "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 is said to lack funding for a deal.

A notice of intention to appoint AlixPartners as administrator, filed a week ago, gives Poundland another week's breathing space from creditors.

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.

(c) Sky News 2026: Poundland owner turns to Thames Water creditors' lobbying firm as political heat rises