The Prime Minister says he and the Business Secretary want to know why a possible rescue was turned down, as directors file to appoint administrators and unions, MPs and rival retailers circle the discount chain
Prime Minister Andy Burnham has spoken for the first time about the crisis at Poundland, saying the Government wants jobs protected and is “ready to support the workforce”. The retailer’s directors filed a notice of intention to appoint administrators on Thursday, putting up to 12,000 jobs and around 600 stores at risk. Mr Burnham and Business Secretary Jonathan Reynolds are demanding to know why an offer to buy the chain was reportedly rejected by its owner, the restructuring specialist Gordon Brothers. The company’s largest distribution hub is in Mr Burnham’s Makerfield constituency.
What the Government has said
Mr Burnham described it as “a deeply worrying time for Poundland staff and their families”. He said: “We want to see jobs protected. If there was a potential owner to avoid this that hasn’t been accepted, then the Business Secretary and I want to know why that is the case. We stand ready to support the workforce however we can.”
Mr Reynolds said: “If it is true that it was not necessary to put the business into administration then the present owners will have to account for that.” He put the scale at 600 stores and 12,000 employees. Labour MP Liam Byrne has also called for scrutiny of how the restructuring is being handled, according to The Times and the Financial Times.
The company said it had spent two months working on a formal sale process after interest from several parties.
The rejected offer and a £30m loan
Irish firm Martin Property Group reportedly offered earlier this week to buy the whole chain. Sky News reported that Poundland’s management had named it preferred bidder. Its plan was said to involve keeping the existing workforce and store network, including the Makerfield warehouse. These were proposed commitments, not guarantees that every job would survive.
The dispute appears to centre on a £30m shareholder loan. Sky News reported that Pepco Group, Poundland’s previous owner, sold the loan to Gordon Brothers over the summer for a nominal £1. Gordon Brothers has since sought full repayment from potential buyers. Sky said Martin Property Group was prepared to repay it when it fell due, rather than immediately. Gordon Brothers was reportedly worried that Poundland could be liquidated before that date, leaving the loan unpaid. That is a possible explanation, not a confirmed account of the owner’s reasoning.
The Guardian reported a different view: that Gordon Brothers believed selling the business in parts could raise more money than the offer for the whole company. Gordon Brothers’ response to these claims was not available at the time of writing.
Directors, suppliers and the High Court
Sky News and The Grocer reported that three restructuring specialists, Andrew Kirkpatrick, Stephen Welch and Dominic Young, were moving to resign. They had joined the board in mid-October. The reports link their departure to disagreement over the owner’s approach and the rejected takeover.
Sky News also reported that major suppliers were preparing to restrict deliveries over fears about payment, and that industry sources said Gordon Brothers had limited management’s access to funds. It said staff were expected to be paid their October wages on time. It put the number of employees at around 10,500, which is lower than the 12,000 quoted by ministers.
The shop workers’ union Usdaw said the High Court had approved the notice of intention to appoint administrators. The union said this gives a temporary window for rescue talks and that administrators have not yet been appointed. It argued that the chain was on course to return to profit and accused the owner of refusing to engage. These are union claims, not independent findings.
Hundreds of staff protested outside the company’s head office in Walsall on Thursday afternoon, the Express & Star reported. Claire Sutcliffe, a team leader at the Park Street store, told the paper: “It’s very sad, it’s not what we wanted.”
Rival retailers eye the stores
Several retailers have reportedly looked at buying individual shops rather than the whole business. Sky News and ITV News named Poundstretcher (backed by Fortress Investment Group), CDS Superstores, Modella Capital, B&M and Iceland. The Grocer also named Aldi and Lidl. These are reported expressions of interest, not completed deals. The Guardian warned that as many as 500 shops could be left without a buyer if the chain is broken up.
Financial picture
The Financial Times reported that Poundland lost £85.2m on £1.5bn of revenue in the year to September 2025. Managing director Barry Williams said like-for-like sales rose 6.7% in September 2026. A sales improvement does not show the company is profitable or has enough cash to meet its liabilities.
Poundland was bought from Pepco by Gordon Brothers in June 2025, and the High Court approved a major restructuring that August. The company had already planned to close dozens of stores and two distribution centres, as it said at the time.
