Gordon Brothers denies none of the figures publicly, but the Commons business committee chair says he is “deeply concerned” about jobs as Poundland seeks a two-week reprieve from creditors in the High Court.
MPs have accused Gordon Brothers, the owner of Poundland, of taking millions of pounds out of the budget retailer while it teetered on a “knife-edge”. Poundland’s management will ask the High Court on Thursday morning for a two-week extension to its legal protection from creditors while a rescue deal is sought. The chain employs 12,000 people and runs 600 stores in the UK and Ireland. Mark Newton-Jones, Gordon Brothers’ European head, gave evidence in private to the Commons business select committee for almost two hours on Wednesday afternoon. Gordon Brothers has been approached for comment.
What the committee chair said
Liam Byrne, who chairs the committee, said he came away from the session “deeply concerned that Gordon Brothers’ behaviour may have jeopardised thousands of jobs on Britain’s high streets”. He said: “Over the last 17 months, they have taken millions out of Poundland when the business was on a ‘knife-edge’.”
“Now Poundland appears to be on the rebound, there’s concerning signs it’s been strangled of access to its own funds in what should be its busiest trading period in the run-up to Christmas,” he added. “Worse, Gordon Brothers refused to say it will prioritise saving jobs over and above its own financial returns.”
The committee also heard separately from Poundland’s management team, led by Barry Williams. Last week, MPs called on the government to protect Poundland and other high street stores from “predatory capitalism” and asset-stripping.
The court hearing
Poundland filed a notice of intention to appoint administrators two weeks ago. That gives the company protection from creditors’ demands until Thursday morning. Directors are now seeking a further 10 working days, which the High Court must approve. Without the protection, Poundland is likely to have to call in administrators, and the advisory firm AlixPartners is already lined up.
Gordon Brothers is understood to support the extension. It has released a further £10m to help Poundland buy new stock and keep trading. The Financial Times reported that £11m had been released for supplier payments, with more support pledged while talks continue. The two figures differ slightly, and it is not clear whether they are separate releases. City AM reported that Poundland’s directors, including Mr Williams and finance chief Shaun Wills, were holding an emergency board meeting on Wednesday evening to decide whether to seek the extension. It said Mr Newton-Jones had indicated support during his appearance before MPs, but that the decision rests with the directors.
Trading and the cash position
Sources said Poundland continues to trade well, with sales up on a year earlier, but has enough cash for only a short period. Gordon Brothers has said the company remains “challenged and vulnerable to any potential downturn in future trading”.
Mr Williams told staff in an internal message, obtained by ITV News, that EBITDA had moved from a loss of £68.1m in the year to September 2025 to a profit of £18.1m in the year to September 2026. These are unaudited management figures and not net profits. City AM reported expectations of a result above £20m after the audit, but no audited accounts have been published. TheBusinessDesk reported that like-for-like sales rose 11.4% in Halloween week, £1.5m ahead of budget. Total sales were lower because of a smaller store estate. Mr Williams’s update referred to 115 store closures during the restructuring.
Questions remain over access to the company’s own money. ITV News reported that Poundland had about £25m in cash on 3 November but could not use it to support normal operations. Completely Retail News, citing the BBC, put the restricted sum at about £50m by 9 November. The figures relate to different dates and neither is a verified bank balance. Sky News reported that Gordon Brothers had accused Poundland’s executives of breaching the terms of an asset-backed lending facility, which the executives are understood to dispute. The precise breach has not been publicly established. ITV News found that payments for new stock stopped on 27 October, though some essential payments continued.
Mr Williams said before meeting MPs that he represented thousands of employees and supply-chain workers. Asked about job security ahead of Christmas, he acknowledged there were no guarantees, PA Media reported.
What Gordon Brothers has reportedly received
Sky News reported on 7 November, citing a presentation given to the government, that Gordon Brothers received £18.3m in fees and interest after buying Poundland in June 2025. The breakdown reported was:
- £8.6m in interest;
- £3.8m in store-closure fees;
- £2.6m in debt-arrangement fees; and
- £3.3m in other fees and charges, derived from the difference between the total and the three named categories.
These figures are unaudited. A Gordon Brothers spokesperson said financial information was not being disclosed while the sale and possible administration were ongoing.
Mr Byrne told the committee on 3 November that about 200 shops had closed since the takeover, around half of them involving Gordon Brothers directly. That is a parliamentary assertion and not an audited count. MPs also questioned why Companies House briefly listed Poundland as dissolved. Business minister Kate Dearden acknowledged the uncertainty but gave no confirmed explanation. Mr Byrne also asked whether a loan facility of up to £60m imposed on Poundland had become a barrier to survival. That is a separate arrangement from the £30m shareholder debt. Sky News reported that three directors resigned about two weeks after being appointed, and that MPs intended to raise it with Mr Newton-Jones. Their reasons have not been established.
The rescue bids
Gordon Brothers bought Poundland for a nominal £1 from the European retail group Pepco in June 2025, taking on £30m in shareholder debt. Pepco still holds £7.5m of that and is prepared to wait for repayment in the hope of saving the business. Gordon Brothers is understood to be in talks with three bidders for the whole chain. Their bids are understood to be worth less than the £30m. Gordon Brothers has indicated it could raise more from a break-up, selling stock and groups of stores to rivals.
- Martin Property Group, a Northern Irish family-owned firm backing a management-led bid that includes Dealz in Ireland, saw its first offer rejected. It amounted to no more than half the £30m Gordon Brothers wants, with less than £7m up front. ITV and City AM put its initial payment at £5m. Sky News reported that it has since written to Alvarez & Marsal and AlixPartners seeking release of funds to restore stock ordering and supplier payments.
- Xyra Group, a little-known finance company with no previous retail experience, is thought to have offered about £12m up front and close to £30m in total. City AM reported its upfront offer as £12.5m and calculated that this would leave £10m outstanding on Gordon Brothers’ £22.5m share. ITV News reported that Xyra was incorporated in November 2024, has no recorded completed acquisitions and showed net liabilities of £296 in its latest filed accounts. Those accounts do not show whether backers have since committed funds. ITV named Andrew Brode, Graham Martin and Dave Elston among the figures presented by the bidder. City AM reported that Xyra approached Poundland founder Steve Smith, who had held discussions but did not plan to join a bid before a deal completed. A company source told ITV it would keep the existing management and expand overseas.
- Innovest was named as the third bidder by the Financial Times. City AM reported that it re-entered talks on 11 November after providing proof of funds, led by Irish businessman Shane Corby. It had earlier fallen out of serious contention over funding concerns. City AM said its revised funded offer was smaller than its first proposal, though the value was not disclosed. Reform UK’s Robert Jenrick has publicly backed it, and it has received advice from former Reform candidate Charles Bunker.
Rival retailers and the wider risk
PA Media reported that Poundland’s advisers have explored selling up to 150 stores to Tesco, and that Iceland and Lidl have also held talks. The Sun named CDS Superstores, Fortress and Modella as other possible purchasers. These are reported discussions and not announced deals. Sky News reported that AlixPartners asked for proposals from firms that could liquidate Poundland’s stock and stores if a solvent rescue fails, and that Gordon Brothers was reportedly among those who could be considered. No appointment has been confirmed.
MPs have referred to about 30,000 further jobs that could be exposed through Poundland’s supply chain and dependent businesses. That is not a figure for confirmed redundancies. Ms Dearden told the Commons that officials were seeking an explanation from Gordon Brothers for why offers intended to keep Poundland operating had not been accepted, and that the government was in touch with the retail union Usdaw. Sky News reported that Business Secretary Jonathan Reynolds held emergency talks with Gordon Brothers and was told the owner was seeking a solvent sale. Prime Minister Andy Burnham has urged executives to protect workers and find a practical solution.
