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Poundland prepares for administration after the US owner that bought it for £1 withdraws funding, putting 12,000 jobs at risk

Three directors overseeing Poundland's sale are set to quit after majority owner Gordon Brothers rejected a solvent bid and steered the chain toward insolvency, threatening thousands of jobs.
Three directors overseeing Poundland's sale are set to quit after majority owner Gordon Brothers rejected a solvent bid and steered the chain toward insolvency, threatening thousands of jobs.

Gordon Brothers, a US investment firm that acquired Poundland for £1 last summer, has withdrawn its funding and is expected to file a notice of intention to appoint AlixPartners as administrator, possibly as soon as today. Business secretary Jonathan Reynolds has written to Gordon Brothers seeking clarification, while union Usdaw has warned that workers could be 'put out of a job before Christmas in the coming days'. Chief executive Barry Williams called the rejection of a rescue bid 'unexpected, unwanted and wholly avoidable'.

Three independent board directors resigned in protest after Gordon Brothers turned down a solvent takeover offer from Martin Property Group.

Gordon Brothers is thought to favour a piecemeal disposal of the 600-store chain, with B&M, Poundstretcher and The Range among the companies understood to be interested in individual sites.

A revised rescue offer from Martin Property Group has not been ruled out, with sources saying an improved bid could still emerge within 48 hours.

MoreThe TelegraphThousands of jobs at risk as Poundland prepares for administrationThe TelegraphPoundland bosses seek legal advice after owner withdraws fundingThe GuardianBusiness secretary writes to Poundland owner as administration fears buildMetroPoundland could collapse 'within days' putting thousands of jobs under threatDaily MailGovernment probes Poundland crisis amid outrage at ownersThe SunOver 12,000 jobs at risk as Poundland on edge of COLLAPSE after directors quitYahoo News UKPoundland Close To Collapse As Thousands Of Jobs Face RiskEvening StandardPoundland could be broken up and face insolvency as bids assessedIrish IndependentThousands of UK high street jobs at risk as Poundland emergency sale process falters
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