Poundland administration is now a live risk as the retailer talks with potential buyers and its management works on a rescue deal with Martin Property Group. Barry Williams, who leads the business, said earlier this month that Poundland’s recovery plan “is working”.
The chain has about 600 stores in the UK and Ireland and 12,000 employees. If the buyout fails, Poundland could fall into administration, a step Usdaw says would be “a disaster for our members”.
Barry Williams and the recovery plan
Williams said earlier this month that Poundland’s recovery plan “is working”, after the business had been struggling for a number of years because of rising costs and competition. He has been working with Andy Bond and the firm’s leadership team on the management buyout alongside Martin Property Group.
Poundland was sold for £1 last summer by Pepco to Gordon Brothers. That sale left the chain in the hands of owners now seeking a buyer while the rescue process continues.
Usdaw and Bally Auluk
Bally Auluk, Usdaw’s national officer, said there are “deep concerns that the business could go into administration” should the buyout fail. He also said, “We are aware that a management buy-out has been attempted and we are told that their offers are being turned down.”
Usdaw’s warning points to the pressure on the talks: if the preferred deal does not hold, the alternative is a process that could put stores and jobs at risk at the same time.
Martin Property Group and the sale
A Poundland source disputed that account and said Martin Property Group is part of the sale process and remains the management team’s preferred partner. A spokesman said the team will “work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that’s already taking shape”.
The immediate test is whether the management buyout can be completed. If it cannot, the owners’ search for a buyer becomes the only route left in a process that has already reached rescue talks.
