Dudley MP among politicians raising alarm over Poundland administration threat

Dudley MP Sonia Kumar has described the plight of Poundland as “deeply worrying” as she called for "everything possible to protect jobs” to be done.

The Labour MP is among a number that have raised concerns about the potential demise of the high street discount chain which has a branch in Dudley along with many others across the West Midlands.

Yesterday it was confirmed that Poundland bosses had moved to appoint administrators after ongoing talks failed to secure a buyer.

Staff staged a protest outside the company’s Walsall head office - urging owners Gordon Brothers to rethink their plans and sell the beloved Black Country founded firm to Irish real estate business that had submitted a ready to go bid to take over Poundland.

The bid by Martin Property Group was rejected - prompting Poundland chiefs to file a notice of intent to appoint administrators.

Dudley’s MP Sonia Kumar said of the situation: "The prospect of Poundland leaving our high streets will be deeply worrying for many people across Dudley. My immediate thoughts are with the 15 members of staff at the Dudley store whose jobs are now facing uncertainty, as well as the employees affected across the company.

“Behind every potential redundancy is a person, a family and a household that relies on that income. At a time when many are still feeling the pressures of the cost of living, the loss of secure local jobs would be a significant blow to our community.

“Poundland also provides an important source of affordable everyday essentials for local residents. Many people depend on access to low-cost shopping options, and the loss of that choice on our high street would be felt by families across Dudley.

“I am urging all parties involved to do everything possible to protect jobs, support affected workers and ensure our town centres continue to offer the affordable services and opportunities that local people rely on.”

Prime Minister Andy Burnham has also reportedly spoken out about the Poundland saga.

The Press Association quoted the PM as saying: “This is a deeply worrying time for Poundland staff and their families.

“We want to see jobs protected. If there was a potential owner to avoid this that hasn’t been accepted, then the Business Secretary and I want to know why that is the case.

“We stand ready to support the workforce however we can.”

Stourbridge’s MP Cat Eccles has also signed a letter sent by a raft of MPs across the country to Business Secretary Jonathan Reynolds outlining “urgent and grave concerns over the future of Poundland”.

The letter, backed by union Usdaw, urges the Minister to intervene to try to safeguard the thousands of jobs at risk.

Poundland has around 600 stores across the country and employs around 11,000 workers.

The business was founded by Black Country market stallholders Steve Smith and his late dad Keith, together with fellow market trader Dave Dodd.

They sold items for 10p in a box on Bilston Market and this proved so successful they went on to open their first store in Burton-on-Trent on December 13, 1990.

The Poundland concept flourished and became a staple on the high street, but in recent years it struggled to compete against the rise in online shopping and competition from the likes of B&M and Home Bargains.

Last summer it was sold by its then owners Pepco Group to American investment firm Gordon Brothers for £1.

Following a year-long recovery programme, however, the company was looking “in very good shape” - Poundland bosses said recently, with positive like-for-like sales growth achieved in the last full quarter to September 27.

Usdaw trade union, which represents many employees at Poundland, has accused Gordon Brothers of pursuing a course of action out of “pure greed”.

National officer Bally Auluk told the Express & Star yesterday: “Something has to be done - otherwise it's another discounted retailer that's going to disappear off the high street.

“It will be a national scandal if this is allowed to happen.”

Gordon Brothers has not responded to a request for comment.