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.

Gordon Brothers, Poundland’s owner, 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.

Gordon Brothers said it was in talks with three potential buyers for the whole business.

A spokesman said: “We are in discussions with three parties for a sale of the whole business and we have also received several offers from established high street retailers for significant parts of the business.

“While our preference remains a sale of the whole company, we are taking due care to ensure that any successful offer can provide the funds required to acquire the business and see it through to sustainable cash generation.”

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