Poundland crisis puts future of Northampton stores in doubt

The future of Poundland stores in Northampton hang in the balance after administrators were called in.

The budget retailer has branches in Abington Street and Riverside which are among 600 across the UK and Ireland.

Poundland filed a notice to appoint administrators last week, putting the future of roughly 11,000 workers at risk.

Gordon Brothers, which only bought Poundland last year for £1 and launched a sale process at the start of September, is under pressure to accept a bid to save the retailer, which is on the brink of collapse despite interest from several major supermarket chains.

In the past year Gordon Brothers have overseen a major turnaround programme in an effort to shore up its finances. It resulted in more than 100 shop closures including at Sixfields and Weston Favell Centre. A branch in Gold Street shut its doors in 2021.

Downing Street says Gordon Brothers must explain when they have rejected offers to save the troubled discount chain.

The Prime Minister’s official spokesman said: “We continue to stay close to what’s an extremely worrying situation for Poundland staff, their families and communities.

“Both the PM and business secretary have been clear they want to know what’s happening.

“Gordon Brothers need to explain why they haven’t accepted any offer to keep the company going.

“It appears they’re not acting in the best interests of their loyal UK staff and stores.”

The notice of intention to appoint administrators, which was filed last Thursday, gave the business 10 working days of breathing space from creditors to secure a potential rescue deal.

Advisers are still in talks with parties interested in buying the brand and swathes of stores, around two months after a sale process was launched.
Tesco reportedly held talks over proposals to buy up to 150 stores, while Poundstretcher owner Fortress also showed its interest in purchasing a number of stores, understood to be as many as 250.

It is understood chains including Iceland, Lidl, B&M and the owners of Wilko and the Range have also expressed their interest.

The talks come after owner Gordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder last month.

Poundland founder Steven Smith says he is ‘gutted’ at the prospect of the chain being put into administration.

He told Newsnight: “I think the business can be saved. I’ve actually tried to contact Gordon Brothers three times now. And they’ve never once come back to me.

“I’m more passionate about Poundland than anyone in the world, to be honest.

“If they haven’t come back to me, they must have some really good offers on the table.

“It can be saved. I know, because I’m still in contact with lots of the management team, that Poundland is up almost 7 per cent this year on last year.

“It’s been restructured, it’s got a good management team, and I think it could be here for another 36 years. So I’m gutted to see that they’re going to put it in administration when they’ve got offers on the table.”