Poundland gets more time to secure a rescue deal as emergency talks continue

Detailed summary

A deadline to secure a buyer was set to expire at midnight, but the retailer now has an extra 10 days to find a buyer.

Poundland has avoided immediate collapse after a deadline was extended to find a rescue deal.

A deadline to secure a buyer for the retail chain was set to expire at midnight, but a court has given Poundland an extra 10 days to find a buyer.

The discount chain, which has 11,000 employees, has been edging towards administration after being blocked by owners Gordon Brothers from accessing cash in its bank accounts.

A committee of MPs questioned Gordon Brothers following accusations that the investment firm hoped to profit from selling off Poundland's 600 shops and stock piecemeal.

Gordon Brothers - which bought the chain for just £1 last year - is accused of forcing that outcome by restricting Poundland's access to available cash needed to restock shops, and pay wages and rent, ahead of the crucial Christmas trading period.

The investment firm, which specialises in buying and restructuring distressed companies, has denied the claims.

However, pressure remains on Poundland's owners after a takeover bid was rejected. The decision prompted calls for answers from politicians, including Prime Minister Andy Burnham.

About £50m had been frozen by Gordon Brothers, the BBC understands, meaning Poundland bosses were unable to restock shelves across its 600 shops.

The BBC understands that Gordon Brothers agreed to release a further £10m to £11m from Poundland's accounts, on top of £11m announced earlier, as the firm seeks to find a new buyer.

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