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Poundland prepares to call in administrators with 12,000 jobs at risk after its US owners rejected a rescue bid

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.

Poundland's board is preparing to file administration papers at the High Court, potentially as early as Wednesday evening, after American owner Gordon Brothers rejected a solvent rescue offer from Irish firm Martin Property Group and cut off the retailer's funding. Business secretary Jonathan Reynolds has written directly to Gordon Brothers demanding answers, while union Usdaw warns that 12,000 workers could lose their jobs before Christmas. Poundland chief executive Barry Williams called the collapse 'unexpected, unwanted and wholly avoidable' in a letter to staff.

Gordon Brothers acquired Poundland for £1 last year, then blocked a £30m loan that would have underpinned the rescue deal.

Lidl, Iceland, B&M, The Range and Poundstretcher are all circling the chain's stores in the event of a break-up, an outcome that would leave most jobs at risk.

Three independent directors stepped down in protest after Gordon Brothers pushed the company toward insolvency rather than accept Martin Property Group's going-concern proposal.

MoreThe TelegraphThousands of jobs at risk as Poundland prepares for administrationAOL News UKBusiness secretary writes to Poundland owner as administration fears buildCity A.M.Jobs on the line as Poundland poised to appoint administratorsThe SunPoundland 'prepares for administration' in 'wholly avoidable & unexpected' moveThe TelegraphPoundland bosses seek legal advice after owner withdraws fundingDaily MailGovernment probes Poundland crisis amid outrage at ownersMetroPoundland could collapse 'within days' putting thousands of jobs under threatYahoo News UKPoundland Close To Collapse As Thousands Of Jobs Face RiskThe SunOver 12,000 jobs at risk as Poundland on edge of COLLAPSE after directors quitIrish IndependentThousands of UK high street jobs at risk as Poundland emergency sale process falters
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