Poundland faces possible shutdown as owner withholds £50m for stock and wages
UK discount chain’s future hangs in the balance after Gordon Brothers’ cash hold‑up threatens thousands of jobs, reports The Guardian
Poundland, the UK discount retailer, faces possible closure after its US owner Gordon Brothers withheld £50 million needed for stock and wages, putting 12,000 staff and 30,000 supply‑chain jobs at risk, The Guardian reported.
Why are Poundland stores in danger?
The stores are in danger because the owners have not released the £50m required for new inventory and payroll, and have extended the deadline by 10 working days before potentially moving the profitable business into administration, according to The Guardian.
What financial actions has Gordon Brothers taken?
Gordon Brothers bought Poundland for a symbolic £1 last year, released £10m on Tuesday to stave off an immediate collapse, and holds £30m of debt as both owner and creditor, the newspaper said.
How are politicians reacting to the crisis?
MPs including Andy Burnham and committee chair Liam Byrne have publicly criticised Gordon Brothers and called for reforms to company law that currently prioritize shareholders over staff, The Guardian noted.
This report is based on original reporting by The Guardian. Read the original source →
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