Poundland has been granted a 10-day extension to find a rescuer after its board applied for a second notice of intention to appoint administrators. The retailer’s owner, Gordon Brothers, agreed to the pause during a closed-door session with the Business & Trade Select committee on Wednesday.
Deadline extended amid sale talks
The initial 10 working day deadline – triggered by an NOI filed on 29 October – expired at midnight on Wednesday. The new window will allow the company to continue operating under statutory protection while it seeks a buyer. Gordon Brothers said it supports the move to provide stability during an ongoing sale process.
Gordon Brothers confirmed it is in talks with three parties for a full business sale. The company also noted it has received offers from established high street retailers for significant parts of the business. It added that funds will be released to ensure payroll is paid in full this month.
Funding and challenges
The owner highlighted that it has provided £85 million in new financing over the past 12 months. Gordon Brothers stated that without its intervention, the retailer would have collapsed into insolvency in August 2025. It emphasized that its focus has been on preserving value and protecting jobs, rather than prioritizing financial returns.
The first NOI was filed after Gordon Brothers rejected a solvent bid from Martin Property Group, backed by Poundland management. The offer was rejected because it did not include repayment of a £30 million shareholder loan on completion. The company has noted that without the £85 million in new financing provided over the last year, which stepped in when no other lenders were willing, the business would have collapsed into insolvency in August 2025. Its efforts have consistently focused on the company’s value and its people, rather than prioritizing financial returns above all else.
Political scrutiny
Liam Byrne, the chair of the Business & Trade Select committee, accused Gordon Brothers of jeopardizing thousands of jobs. He claimed the owner had taken millions out of the company while it was on a “knife edge” over the last 17 months.
Byrne urged Gordon Brothers to give Poundland access to its own funds and work to protect the maximum number of jobs and stores. The retailer operates about 600 stores and employs more than 10,000 staff. Byrne expressed deep concern that Gordon Brothers’ behavior may have jeopardized thousands of jobs on Britain’s high streets. He noted that over the last 17 months, the owner took millions out of Poundland when the business was on a “knife edge.” He also highlighted concerning signs that the business has been “strangled of access to its own funds” during what should be its busiest trading period leading up to Christmas.
