MPs have reversed their threat to publicly interrogate Poundland's owners, instead agreeing to hold private discussions with Gordon Brothers next Wednesday as the discount retailer teeters on the edge of administration. The shift came after daily contact between lawmakers and the US investment firm, which bought the chain for less than £1 last November and now owns 600 shops employing over 10,000 staff members.
Liam Byrne MP, chair of the Business, Innovation, Science and Trade Committee, initially wrote to Gordon Brothers requesting they attend a public hearing, with MPs prepared to proceed without them if necessary. However, the committee has now agreed to pose its questions privately and publish a statement afterwards. Byrne said Gordon Brothers had given assurances they were in 'active talks with several credible buyers about selling Poundland as a going concern.' He stressed the stakes: 'What's at stake is thousands of livelihoods, shops that keep our high streets alive and a service that communities across the country rely on.'
The private meeting takes place one day before Poundland could enter administration after filing a notice of intention to appoint insolvency experts last week. Several bidders are reportedly competing to buy the business. Martin Property Group's offer to purchase the entire company collapsed over loan repayment disagreements, while Xyra Group Holdings is understood to be interested in the whole business. Major retailers including Tesco and Poundstretcher have also submitted bids for selections of shops. Gordon Brothers has faced criticism for rejecting bids and appearing to pave the way for a carve-up of the estate.
However, Usdaw, the shopworkers' union, expressed disappointment with the move to private talks. National officer Bally Auluk said: 'There are serious questions that need to be answered in public, not behind closed doors.' The union raised concerns about potential asset stripping, creditors left out of pocket, staff job losses and taxpayer liabilities for redundancy payments. Auluk called on the Poundland owners to justify their actions and end their refusal to speak directly with the union.
For UK workers, suppliers and communities, the outcome of these talks will determine whether thousands of jobs are preserved or lost, and whether local high streets retain a discount retail option.