Poundland secures more time to find buyer as rescue talks continue

Detailed summary

The retailer has an extra 10 working days of breathing space from creditors to secure a potential rescue deal.

Poundland has given itself more time to thrash out a rescue deal for the business as it battles to stave off the threat of insolvency.

Court documents show the retailer has applied for a second notice of intention (NOI) to appoint administrators after the first one expired on Thursday.

This gives the retailer an extra 10 working days of breathing space from creditors to secure a potential rescue deal.

Bosses said funding had been agreed so shops can stay open and trading during this period.

Poundland’s owner, Gordon Brothers, has faced mounting political pressure to protect the chain’s future and MPs have accused them of deliberately cutting off funds and pushing it to the brink of insolvency.

Prime Minister Andy Burnham has stepped in to call for executives to work with the Government to find a solution that saves shops and jobs.

Poundland’s board said: “Amid an ongoing sale process, and with funding agreed to enable the business to continue trading during this period, the board of Poundland has today resolved to make an application for a second NOI with a view to identifying the best available prospects for shareholders, creditors and our people.

“This extends the current protections over the business for a further 10 working days.

“Our stores remain open as usual during this period and we thank our colleagues, suppliers and customers for their incredible and continued support.”

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