Poundland on the brink with thousands of jobs under threat

Around 12,000 jobs at 600 Poundland stores are in jeopardy, a trade union has claimed, despite the ongoing sale process of the bargain shop chain.

Current owners Gordon Brothers recently put Poundland up for sale just over a year after buying it for £1. Talks are ongoing with prospective buyers, including the Martin Property Group, but the retail workers trade union Usdaw is concerned that Gordon Brothers may opt to put the company into administration.

One prominent member of the union suggested bids for Poundland are being rejected, with the possibility of the company’s future being decided this week.

“Sources within the company are telling me that a decision about the future of Poundland could be made as early as [Tuesday], and there are deep concerns that the business could go into administration, which would be a disaster for our members,” said Mr Auluk, who described Gordon Brothers’ refusal to engage in talks with the union as an “absolute disgrace”.

“We are aware that a management buyout has been attempted and we are told that their offers are being turned down. We found it difficult to understand why Poundland was being described as struggling, after the company recently announced they had returned to like-for-like sales growth and staff were being thanked for their ‘amazing efforts’.”

Poundland itself pointed to a recent company financial report, showcasing a perceived recovery and return to profitability.

The updated guidance also suggested performance “confirmed an acceleration in its positive trajectory over recent weeks”, suggesting the near future would follow a similar pattern.

Poundland managing director Barry Williams said at the time: “Our recovery plan is working, thanks to our investment in simple low pricing and new ranges, powered by our new in-house teams. That positive customer reaction is great news for our shareholders, colleagues and suppliers.” Mr Williams added that it was very much “business as usual” in terms of Poundland’s high street prospects.

Mr Williams is part of the group seeking to take over the firm, along with a former Asda chief executive.

“We confirmed that Barry Williams, Andy Bond (ex-CEO of Pepco and Asda) and the Poundland leadership team have been working with the Martin Property Group on an MBO,” a Poundland spokesperson said.

“While the Martin Property Group is their preferred partner, the leadership team’s sole intention is to work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that’s already taking shape.”

Aldi and Lidl have both been widely reported as other potential interested parties.

Gordon Brothers and Usdaw have been contacted for comment.