Poundland's 'blockbuster' Halloween raises fresh questions for US owner ahead of looming collapse

Poundland's 'blockbuster' Halloween raises fresh questions for US owner ahead of looming collapse EXCLUSIVE: The US owner of UK discount chain Poundland has blamed "multiple economic challenges" for what it says are the retailer's problems, yet internal figures suggest sales and profits are up Poundland had a “blockbuster” Halloween - seemingly undermining claims by the discount chain’s American for its demise. Investment firm Gordon Brothers, which is Poundland’s controlling shareholder, is facing intense pressure from Prime Minister Andy Burnham, Business Secretary Jonathan Reynolds and others for rejecting a solvent bid from a Northern Irish-based business. Poundland’s own management has also been critical, claiming Gordon Brothers had starved it of funding, forcing them to place the chain on the brink of administration. The board threw in the towel last week by filing a notice of intention to appoint administrators, threatened 10,500 direct job losses and the worst retail collapse since Wilko imploded in 2023. Sky News says a letter sent by Mark Newton-Jones, who runs Gordon Brothers’ European operations, to a senior advisor at the Department for Business, Innovation, Science and Technology claims it had “supported Poundland with £85m of additional financing” since acquiring the business in the summer of 2025. It also stated: “Like other high street retailers, the company faces multiple economic challenges, including rising inflation, increasing staffing costs and shrinkage from severe levels of shoplifting, which means it is still not cash-generative at a sustainable level despite the turnaround efforts.” However, one retail industry source branded the claims “bunkum”. It comes as figures seen by the Mirror reveal the retailer raked in nearly £32million in sales in the week to last Sunday, which was £1.5m ahead of budget and an 11.4% surge year on year, and a "blockbuster week for Halloween". Its profit margin has grown to 36.7%. It follows what bosses said was a “fantastic” October, with sales of £107million, up 7% on a year ago. Profits of £1.9million for the month were £1.8million ahead of budget and £1.2m higher than a year ago. Gordon Brothers, which only bought Poundland last year for £1 and launched a sale process for the retailer at the start of September, is under pressure to accept a bid to save the retailer, which is on the brink of collapse despite interest from several major supermarket chains. The Prime Minister's official spokesman told reporters on Tuesday: "We continue to stay close to what's an extremely worrying situation for Poundland staff, their families and communities. "The Business Secretary will meet the Gordon Brothers later this week in order to continue establishing the facts and seek an outcome that protects jobs and keeps Poundland trading. "BIST (Business, Innovation, Science and Trade) minister Kate Dearden will also meet Poundland's chief executive and chief finance officer this week. And, more broadly, both the PM and the Business Secretary have been clear they want to know what's happening. "Gordon Brothers need to explain why they haven't accepted any offer to keep the company going. That's the case. It appears they're not acting in the best interests of their loyal UK staff and stores." The notice of intention to appoint administrators filed on Thursday gave the business 10 working days of breathing space from creditors to secure a potential rescue deal. Advisers are still in talks with parties interested in buying the brand and swathes of stores, around two months after a sale process was launched. Tesco has held talks over proposals to buy up to 150 Poundland stores, sources with knowledge of the process have told the Press Association. Poundstretcher owner Fortress also showed its interest in purchasing a significant number of stores, understood to be as many as 250 shops.It is understood that other grocery chains, such as Iceland and Lidl, are also in the frame to acquire some stores. Wilko and The Range owner CDS Superstores and B&M have also expressed their interest in sites.It comes afterGordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder last month. Poundland currently runs about 600 stores across the UK and Ireland, including around 70 under the Irish Dealz brand. Gordon Brothers had overseen a major turnaround programme at Poundland which had already resulted in the firm shutting more than 100 shops over the past year in an effort to shore up its finances. However, the impending insolvency comes amid reports of increasing friction between Gordon Brothers and Poundland management. Mr Newton-Jones said in a letter, seen by Sky News, that Gordon Brothers had committed significant working capital to reducing Poundland's £70 million losses. He argued that breaking up the chain, with retailers including Tesco, Lidl and B&M interested, offered the best prospect of protecting jobs at Poundland.