Poundland owner secures two extra weeks to ensure retail chain’s survival
Poundland's troubled retail chain has secured two more weeks of legal protection from creditors after its US owner, Gordon Brothers, won approval from the high court on Thursday morning.
The management of Poundland won approval for the extension of legal protection from creditors, with the board stating they sought extra time "with a view to identifying the best available prospects for shareholders, creditors and our people." The company emphasized that its stores remain open as usual during this period, thanking colleagues, suppliers and customers for their continued support.
Financial pressure and job protection
Gordon Brothers has been under pressure to accept a bid that would save retail jobs and protect thousands of suppliers since Poundland filed a notice of intention to appoint administrators two weeks ago. The US firm confirmed it has provided £85m of financing via an asset-backed loan that Poundland has only partially used over the past year.
We support the board's decision to extend the legal moratorium over the company by a further 10 working days. This brings additional stability amid an ongoing sale process in the backdrop of increasing cost pressures and a difficult inflationary economic environment.
MPs accuse owner of extracting funds
Gordon Brothers faced criticism from MPs who accused the Poundland owner of extracting millions of pounds 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.
The US investment firm defended its actions, stating it had provided finance for Poundland "when no one else was willing to finance the company – and has contributed substantial efforts to support a turnaround." Gordon Brothers added that without their intervention, "the company would have collapsed into insolvency in August 2025."
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