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UK government to press Poundland-owner over retailer's future
Ministers want Gordon Brothers to back a rescue deal as talks continue with Tesco, Fortress and others over stores and jobs.
British Prime Minister Andy Burnham urged Poundland's US-based owners, Gordon Brothers, to find a "practical solution" as the discount retailer filed for administration last week, jeopardizing roughly 11,000 jobs.
Purchased last year for £1, Gordon Brothers launched a sale process in September and now faces intense pressure to accept a rescue bid as Poundland teeters on the brink of collapse.
Tesco held talks regarding proposals to acquire up to 150 stores, while Poundstretcher owner Fortress showed interest in as many as 250 shops; other chains including Iceland and Lidl are also exploring bids.
Business Secretary Jonathan Reynolds is set to meet Gordon Brothers this week, while the Commons Business, Innovation, Science and Trade Committee has "issued a request to Gordon Brothers to come before us next week to answer questions."
Downing Street criticized Gordon Brothers' handling, with the Prime Minister's official spokesman stating, "It appears they're not acting in the best interests of their loyal UK staff and stores," as the government monitors this "extremely worrying situation.