Poundland's threatened collapse delayed - giving hope to its 10,500 workers

Poundland's threatened collapse delayed - giving hope to its 10,500 workers Stricken discount chain Poundland has asked another 10 days to try and find a buyer High street chain Poundland has given itself more time to thrash out a rescue deal for the business as it battles to stave off the threat of collapse. The discount retailer has applied for a second notice of intention (NOI) to appoint administrators after the first one expired on Thursday. This gives the retailer an extra 10 working days to secure a potential rescue deal. Bosses said funding had been agreed so shops can stay open and trading during this period. The move gives hope for Poundland's more than 10,000 strong army of workers. The chain has around 600 stores across the country. It comes after Poundland’s US owner Gordon Brothers appeared before MPs on the Business, Innovation, Science and Trade Committee in private on Wednesday. The firm was represented by Mark Newton Jones, the former Mothercare boss who now runs investment firm Gordon Brothers’ operations in Europe. Gordon Brothers bought Poundland a year ago for just £1 but reports claim the chai's management was forced to prepare for administration after being starved of funding by the owner. The Mirror understands Poundland’s management has been thwarted by not being able to use funds in its own accounts. The chain is believed to have taken roughly £30million in sales last week alone and, rather than struggling, takings are up year-on-year. The notice of intention to appoint administrators has already seen deliveries from suppliers dry up. Stock levels were high ahead of the Christmas rush but it is understood gaps could now begin to appear on shelves. Poundland's board said: "Amid an ongoing sale process, and with funding agreed to enable the business to continue trading during this period, the board of Poundland has today resolved to make an application for a second NOI with a view to identifying the best available prospects for shareholders, creditors and our people. "This extends the current protections over the business for a further 10 working days."Our stores remain open as usual during this period and we thank our colleagues, suppliers and customers for their incredible and continued support." Labour MP Liam Byrne, chair of the Business Committee, said after Wednesday's meeting: "I’m deeply concerned that Gordon Brothers behaviour may have jeopardised thousands of jobs on Britain’s high streets."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. Worse, Gordon Brothers refused to say it will prioritise saving jobs over and above its own financial returns."The prospect of a good outcome however is now higher thanks to the focus on the business of the last week."But Gordon Brothers now needs to do the right thing: give Poundland the access it needs to its own funds, and work as hard as possible for a future that protects the maximum number of jobs and stores [Image text:] Poundland Amazing Value Everyday! ENTRANCE EXIT