Reform urges Labour to block the US owners' break-up of Poundland as nearly 12,000 jobs hang in the balance

Reform UK has written to the government urging it to prevent US investment firm Gordon Brothers from dismantling Poundland rather than selling it as a going concern. Andy Street, formerly managing director of John Lewis, described the apparent break-up of the 36-year-old retailer as 'disgraceful', warning that a viable offer had been rejected in favour of splitting the business apart. Prime Minister Andy Burnham has said he will seek answers from the owners over what he termed a 'deeply worrying' situation.

Northern Irish family firm Martin Property Group has 'reconfirmed two separate offers' to acquire all or part of Poundland, but Gordon Brothers has so far turned them down.

Gordon Brothers is understood to believe that a break-up will raise more money than Martin's offer, which fell short of the £30m debt it took on when it acquired the chain for £1 last year.

As many as 3,000 Irish jobs are also at risk through Poundland's Dealz subsidiary, which has more than 70 stores across Ireland.