Poundland pins rescue hopes on Yorkshire Tea, Pot Noodle and Gloria Gaynor
Poundland's US owners have released £21m to help the discount chain restock shelves temporarily, keeping hopes of a rescue deal alive before crunch talks with the government.
The emergency resupply effort, codenamed "Operation Gloria" by staff, dispatched about 16m grocery items to 600 shops in the UK and Ireland over the weekend. The name comes from the Gloria Gaynor song I Will Survive, which soundtracked a defiant video posted on social media by Poundland showing pallets of Yorkshire Tea and Pot Noodles making their way to shelves.
US investors release funds
The move came after Gordon Brothers, the US investors who MPs have accused of "predatory capitalism", agreed to unlock £21m of £50m that it had been accused of endangering the business by withholding. The money will provide breathing space while rescue talks continue, ensuring suppliers continue sending goods during the crucial pre-Christmas trading period.
The wolf of Wall Street, on the British high street
Rescue talks continue
Poundland filed a notice of intention to appoint administrators at the end of last month, throwing the fate of its 12,000 staff and about 2,000 suppliers into uncertainty. Last week, the chain won approval from the high court for an extension of legal protection from creditors, giving it until 26 November to find a buyer.
The company and Gordon Brothers are now heading for talks with potential buyers and the business secretary, Jonathan Reynolds. Discussions could be soured by allegations – denied by Gordon Brothers – that the US investment group is more interested in protecting its own interests by breaking up the business despite signs of a dramatic improvement in its trading performance.
Preferred bidder faces obstacles
Poundland has said it is in discussions with three potential buyers. Bids from the investment groups Xyra Group Holdings and Innovest are understood to have relatively little chance of success. Martin Property Group, a Northern Irish company, is Poundland's preferred bidder but progress has stalled over the repayment terms of a loan from Gordon Brothers.
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