The government rules out nationalising Poundland HOURS after a Labour minister refused to rule out state control of the troubled chain
Tesco is in talks to buy up to 150 Poundland stores as Gordon Brothers, the US private equity firm that bought the chain for £1 last year, edges it toward break-up with 12,000 jobs at risk.
Lord Leong, Labour's business minister, ignited the controversy earlier Wednesday by declining to exclude either a taxpayer subsidy or outright state ownership of the struggling discount chain, prompting shadow chancellor Andrew Griffith to call the idea "insane." Hours later the government reversed course, with ministers instead urging US owner Gordon Brothers to accept a rescue offer.
Gordon Brothers met business secretary Jonathan Reynolds on Wednesday, with No 10 branding them "not acting in the best interests" of 12,000 staff.
A new bidder, Xyra Group Holdings, tabled a £12.5m offer — more than double rival Martin Property Group's upfront sum — yet the firm was incorporated fewer than two years ago and has no completed acquisitions on its record.
Tesco is in talks to acquire as many as 150 Poundland stores, with Fortress, Iceland, Lidl and B&M also eyeing parts of the 600-store estate.
