Burnham ‘ready to support’ Poundland staff as retailer faces collapse

Andy Burnham has said the government is “ready to support” Poundland staff as the retailer teeters on the brink of collapse.

The prime minister called for answers over why an offer to buy the business from its current owners, which would have protected jobs, was rejected.

“This is a deeply worrying time for Poundland staff and their families,” Burnham told the BBC.

The discount chain is teetering on the edge after its US-based owners Gordon Brothers cut off a vital funding supply and rejected a takeover offer from Irish firm Martin Property Group (MPG).

Burnham said: “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.

“We stand ready to support the workforce however we can.”

The retailer’s bosses have filed a notice of intention to appoint administrators, giving the business 10 days to find a rescue deal.

The move comes after managing director Barry Williams told its 12,000 staff the chain’s US owner had cut off a vital supply of funding despite Poundland’s strong sales.

It is understood Gordon Brothers wants to break it up, with rivals Poundstretcher, B&M and Lidl interested in potentially buying up its stores.

Business Secretary Jonathan Reynolds earlier said he was “very much concerned” by the uncertainty clouding Poundland’s future.

Gordon Brothers bought Poundland, which had been struggling, from the Polish retail group Pepco last year for a nominal £1. A little over a year later, it put the business up for sale.

Despite an offer on the table for the business, Poundland’s managers and owners have not been able to agree on a buyer, which has left it on the brink of collapse.

It could still be purchased out of administration in a so-called pre-pack deal, but the most likely option is for it to be broken up and for Poundland’s stores to be sold off.

Poundland was founded in 1990 with a store in Burton-upon-Trent, and has around 20 million customers per year.

It has across its 600 stores in the UK and Ireland, where it trades as Dealz.

It sells low-cost everyday products, general merchandise and fashion on local high streets.