Poundland's preparation to appoint administrators has drawn fierce criticism from senior figures in retail and politics, with the future of nearly 12,000 staff now in doubt. The chain, which operates 600 shops, filed a notice of intention to appoint administrators from AlixPartners with the High Court on Thursday after its owner Gordon Brothers rejected a bid from Northern Irish firm Martin Property Group. The move gives the business ten days to secure a rescue deal, but the company has said the Poundland brand and its shops will not be sold as a whole, meaning a break-up of the 36-year-old retailer and potential job losses at shops not purchased by other operators.
Andy Street, former managing director of John Lewis and Mayor of the West Midlands between 2017 and 2024, called the situation 'disgraceful' and questioned why a viable bid had been rejected. Street said: 'The owners must be called in to explain this. Poundland must be saved to protect thousands of jobs.' His concerns mirror those of the Prime Minister, who said on Thursday that he would demand answers over what he described as a 'deeply worrying' situation. Manchester Mayor Andy Burnham added: '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.'
Talks between Gordon Brothers and Martin Property Group broke down over the repayment of a £30million loan. According to reports, Martin Property Group has since contacted advisers AlixPartners to confirm its continued interest in acquiring the retailer. The Poundland board said on Thursday that several established retail operators had made bids for a significant number of shops, but no acceptable offer had been made for the business as a whole, despite what it described as enormous efforts over the previous two months.
Potential buyers are reportedly being considered for different parts of the business, including Poundstretcher, Iceland, Lidl, and CDS Superstores, the owner of The Range, Homebase and Wilko. Staff cuts could affect the 600 shops and a distribution centre in Greater Manchester employing around 270 workers. Bally Auluk, national officer for the Union of Shop, Distributive and Allied Workers, said this week had been 'incredibly distressing' for staff and accused Gordon Brothers of attempting to 'jeopardise their livelihoods,' urging the owners to reconsider and prioritise finding a single buyer.
Poundland's struggles reflect broader pressures on High Street retailers. A retail expert noted that the chain had moved away from the single £1 price point that defined its identity and expanded into clothes and frozen food. The retailer is also facing higher costs following government increases to wages and employer National Insurance contributions, while shoppers have been attracted to online rivals including Amazon and Temu. If Poundland collapses entirely, it would rank among the biggest High Street losses since Debenhams closed in 2021 with the loss of 12,000 jobs.