Poundland has issued an update today (November 12), following the end of a 10-day period that allowed it to try to secure a potential rescue deal.
In recent months, the future of Poundland has been uncertain, with last-ditch efforts hoping to save the struggling retailer.
The chain filed a notice of intention to appoint administrators at the end of October, which expired at midnight last night.
Asked if the company was going into administration on Thursday, managing director Barry Williams told reporters: “We’re going to go and have a board meeting now to have those conversations.”
What happens when a company goes into administration?
Now, Poundland has issued an update, informing customers of its future plans.
Poundland issues update amid uncertain future
Poundland customers have been assured that its stores are open as normal for at least the next 10 working days.
The Board of Poundland Limited said: “Over the past two weeks, Poundland has been operating under the statutory protection of a Notice of Intention (NOI) to appoint Administrators.
“Amid an ongoing sale process, and with funding agreed to enable the business to continue trading during this period, the Board of Poundland has today resolved to make an application for a second NOI with a view to identifying the best available prospects for shareholders, creditors and our people.
“This extends the current protections over the business for a further 10 working days.
“Our stores remain open as usual during this period, and we thank our colleagues, suppliers and customers for their incredible and continued support.”
Poundland has roughly 600 shops and 11,000 employees across the UK.
UK high street shops that no longer exist
Ahead of the announcement, Reform UK deputy leader Richard Tice said: “Hopefully the directors will be able to extend the notice of administration period from tonight to allow time for a deal to be done with a new buyer for Poundland.
“This will protect many thousands of jobs and keep an important value retailer on the High Street, for hard-pressed consumers worried about rising bills.”
After a meeting with MPs on the Commons Business, Innovation, Science and Trade Committee, Mr Williams thanked the chain’s staff, whose jobs are at risk.
He told Sky News he was “representing 11,000 colleagues” as well as thousands in the broader supply chain and “maybe even the retail industry” at the meeting.
Asked whether he could guarantee the security of jobs and keep the business going in the run-up to Christmas, he said there were “no guarantees at this point”.
It is understood that Poundland’s owners, Gordon Brothers, have enabled the release of around £10 million of funding for things such as paying staff, taxes and suppliers of stock.
The extension to Wednesday’s deadline could mean the prospect of a deal that would satisfy the company’s creditors remains on the table.
Advisers have been in talks with parties interested in buying the brand or parts of the business such as swathes of shops.
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It has held talks with potential bidders including Tesco over proposals to buy up to 150 stores, and other chains such as Iceland and Lidl.
Investment firm Xyra Holdings emerged as a potential buyer for the whole business, while Irish firm Martin Property Group is believed to remain interested.
Gordon Brothers previously rejected a takeover offer from Martin Property Group but management named the firm as the preferred bidder last month.
Would you like to see Poundland remain on UK high streets? Let us know in the comments below.
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