Uncertainty for Poundland stores across the Midlands as fears for future of discount chain heighten

Poundland stores across the Midlands face more uncertainty amid reports the discount chain could be close to collapse.

Sky News has reported that three directors brought in less than two weeks ago to oversee an emergency sale of the company are on the brink of resigning after a dispute with Poundland’s majority owner Gordon Brothers.

Poundland, which has around 600 stores in the UK and Ireland including many across the West Midlands and Shropshire, has been in talks for a takeover deal with bidders including Martin Property Group and TG Jones owner Modella Capital as owner Gordon Brothers continued with efforts to secure a sale of the business.

Latest reports, however, have heightened fears the beloved discount chain could collapse within days, putting stores across the country at risk of closure.

The dispute is reported to centre on the shareholder’s decision not to accept a solvent offer for the company from Martin Property Group, which would put Poundland at risk of being broken up following insolvency proceedings.

It’s understood the Irish retail estate business has been the management team’s preferred partner to take Poundland forward.

The Walsall-headquartered discount retailer told the Express & Star earlier this month that Poundland’s leadership team including Barry Williams, its managing director, and Andy Bond, Pepco’s former CEO, had been working with Martin Property Group on a “fully funded, ready-to-go” offer for the business that would keep it intact and build on the rapid progress already made.

Lakeland owner Hilco Capital and Poundstretcher owner Fortress Investment Group have also reportedly shown interest in Poundland with Fortress said to have expressed an interest in a portion of stores - around 200 to 250.

Professional services firm Alvarez & Marsal, which has been advising Poundland's owner, Gordon Brothers, has been approached for comment.

In an earlier statement the firm said it had been evaluating bids submitted on September 28 and that a decision could be made in due course.

Gordon Brothers said when appointing the three directors - former Steinhoff International advisor Andrew Kirkpatrick, restructuring expert Stephen Welch and Dominic Young - on October 15 that the board was evaluating options “with a view to minimising uncertainty for the people, suppliers and local communities with an interest in the business and its future”.

All parties have been contacted by the Express & Star for a comment.