Retail trade union Usdaw has said it is “deeply concerned that Poundland is being pushed into administration” by owner Gordon Brothers.
The union said it had persistently sought talks with Gordon Brothers to no avail and feared a decision could be made on Poundland’s future as soon as Tuesday.
Usdaw national officer Bally Auluk said sources had indicated a management buyout attempt by Poundland bosses was being turned down, with 12,000 jobs at stake.
“With thousands of jobs on the line, it is an absolute disgrace that Gordon Brothers has failed to engage with us to seek a secure future for the business,” said Auluk.
“Sources within the company are telling me that a decision about the future of Poundland could be made as early as tomorrow and there are deep concerns that the business could go into administration, which would be a disaster for our members.
“We are aware that a management buyout has been attempted and we are told that their offers are being turned down.”
Auluk said it was “difficult to understand why Poundland was being described as struggling” in media reports after the discount chain recently announced a return to like-for-like sales growth.
“Gordon Brothers need to be open about their intentions and demonstrate their commitment to the business, which our members are successfully helping to turn around,” Auluk added. “The very least they should do is now engage with Usdaw to ensure that our members have a say in the future of their jobs.”
As reported by The Grocer in September, Poundland bosses and Andy Bond, the former CEO of Asda and Pepco Group, have engaged in talks with Gordon Brothers over a management buyout bid. It has since been confirmed that Irish property company Martin Group is the bidder backing the management buyout team, which includes Poundland MD Barry Williams.
A Poundland spokesman said: “We’ve confirmed that Barry, Andy Bond and the Poundland leadership team have been working with the Martin Group on an MBO.
“While the Martin Group is their preferred partner, their sole intention is to 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.”
Gordon Brothers was approached for comment.
Poundland has about 12,000 employees and over 600 stores.
The retailer recently reported sales had returned to like-for-like growth in the quarter to 27 September, rising 6.4% on an adjusted basis or 3.3% unadjusted.
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