Poundland has secured a two-week extension of legal protection from creditors after winning high court approval on Thursday morning, buying more time for its owner to complete a sale of the 600-store chain that employs approximately 12,000 people across the UK and Ireland.
Gordon Brothers, the US investment firm that owns Poundland, said it is "taking due care" to assess whether one of three bidders for the whole business has sufficient funds to complete the acquisition. The company is also in talks with established high street retailers about purchasing significant parts of the business, though the preference remains a sale of the entire company. Gordon Brothers said it is working to "secure a credible plan that delivers certainty, preserves value and protects as many jobs as possible."
The extension came after Poundland filed a notice of intention to appoint administrators two weeks earlier. Poundland's board said it sought the additional time "with a view to identifying the best available prospects for shareholders, creditors and our people." Stores remain open during this period, the company said, and it thanked colleagues, suppliers and customers for their support.
Gordon Brothers confirmed it has provided £85m in financing through an asset-backed loan, of which Poundland has only partially drawn down over the past year. This is in addition to a £30m shareholder loan largely taken on by Gordon Brothers when it bought the business for a nominal £1 last year. The firm said it has also confirmed that funds will be released to allow staff payroll to be made in full this month, with additional funds to support ongoing trading.
The extension represents a reprieve after intense political pressure. MPs accused Gordon Brothers on Wednesday of extracting millions from the retailer when it was on a "knife-edge". Documents showed the finance firm had taken close to £20m in interest payments and various fees, including those relating to store closures, since acquiring Poundland. Gordon Brothers responded by saying it had provided financing "when no one else was willing to finance the company" and that without its support, the business "would have collapsed into insolvency in August 2025."
For borrowers and businesses dependent on Poundland's supply chain, the extra two weeks offers a chance for the chain to be sold as a going concern, potentially avoiding widespread job losses and supplier disruption that would follow administration.